I'm 18 years old.Just graduated. How would i go about starting credit?(a SMART way)?

Answer 1

Speaking as a 19 year old who somehow acquired $3000 worth of debt through an American Express card, I might be able to help...

I say shop around for the lowest interest/APR rates. I'm not sure which Visa, AmEx, Mastercard, etc are the lowest, but just be careful with your rates. Try to stay away from credit card agreements where the company can raise your rate at any time, because that will screw you over in the long run.

Just keep in mind that you SHOULD NOT GO CRAZY with a credit card. Its not free money. Think of it as a loan every time you purchase something. ...Sorry if this sounds like a lecture, but like I said before, I learned the hard way :-)

Answer 2

Get a checking account and learn how to balance a checkbook. Always leave at least $20 over a zero balance for wiggle room. Bouncing a check because your account is a nickel short costs you about $35 in bank fees and returned check charges. Avoid that hassle and the embarrasment of bouncing a check by leaving a cushion. Many banks offer free checking accounts, I think Washington Mutual still does.

I started credit with a Macy's and Sear's card. After about 6 months of paying them, I got a Visa. Pay off your balances, start small. Credit cards are convenient but it's also easy to spend the money and forget about it two days later. Then the bill comes and it's much more than you ever remember spending. That is how people get into trouble. Do not use the "convenience checks" they send you, it's at cash advance rates when you use those and those charges can be budget killers.

Guard your personal information like date of birth, social security number and even phone or address info unless someone really needs it. Don't fill out surveys, don't do contests at booths at the mall. Every time you apply for a credit card, those creditors sell your name a thousand times over and you end up getting more and more offers. Sign up to get off the junk mail lists, I think it's the Direct Marketing service, do a search on "stopping junk mail" and you should find it. While you are at it, you can register your phone number on the federal Do Not Call list, too. This prevents those companies your credit card sold your name to from calling you. You have to register to get off the lists, do a search on "do not call list".

Not having your personal information bought and sold helps protect you from identity theft.

Good luck!

Answer 3

You want to avoid credit at all costs. Let me explain: Debt is crippling no matter how much or how little you have. If you have debt and don't have the money (regardless of the reason) to pay the debt you lose. Your credit card bill, car payment and house payment come whether you have money or not. You don't need to be in debt PERIOD.

Alternative: Put $ 1000.00 away in an emergency fund ASAP. Do NOT touch it for any reason except a legitimate emergency. Ex. your car brakes down unexpectedly and will cost you $ 500.00. Your choice (owe for it or pay for it with no debt).

2nd of all: put away enough money to let you live for 3 to 6 months whether or not you have a job (corporations are VERY fickle these days and lay off people with no notice). If you have that money set aside you can look for a new job without having to panic how your bills (utilities, rent, gas) will be paid until you get back to work.

Now--how do you get a car or other needs? You save for it. Let's say you want to buy a car that costs $ 10,000. You don't have $ 10k now. That's all right. If you put aside (in savings $ 300.00 a month for 33 months) you can pay cash. In the mean time you save for your emergency fund and you buy a car you can pay cash for.

Obviously the point I'm making is this. If you have to have plastic (and be VERY careful with this) get a debit card- - do not go into debt. Make sure you keep good records and set up a WRITTEN BUDGET.

When your friends are in debt up to their eyeballs you will have financial freedom to do what you want to do and not pay 21% interest on a $30-50. pair of jeans (that would end up taking you 10-12 YEARS to pay for if you pd the minimum payment on a credit card) or pay $ 1500-2000 interest on a $ 7500 car financed at 15%.

Answer 4

As a mortgage banker I deal with credit every day. If you have no credit, shop for a credit card with no annual fee. Use the card to pay for small items that you would normally pay cash for. Pay off the bill every month. If you are renting, pay your rent and utilities on time. Never, Never, Never, keep a balance on any credit card. If you do this, you will establish a credit history that will put you in the top 10% of the people living in this country.

Answer 5

Apply for a credit card with a very low limit, $500. make sure to check the interest rate. Do not apply if rate is above 10%. Keep your balance low and make more than a minimum payment. Payoff the balance quickly and keep account open. Do not allow yourself to charge, if you can't afford paying cash, put it on layaway or save a small amount from your paycheck till you have enough to pay for a large chunk of the bill after you charge it to your credit card, use the credit card to build your credit rating not to increase your debt.

Answer 6

Or try HBCS card services. They offer no fee cards too. And like the man said. Pay off your balance every month. Interest doesn't matter than. AND, disregard the advise about carrying balances. This doesn't necessarily hurt your credit but it doesn't enhance it as fast a zero balance will.

Lots of good advise here, with the exception of snddupree. That one has a chip on his shoulder. And checking accounts don't do anything for credit building.

Answer 7

Department store credit card and pay it off each month. Then go for a Visa or Mastercard. Banks don't usually give out loans unless you've had the cards first.

Answer 8

You can always get a secured credit card. It does require a deposit on your part. But then, it will build your credit as long as you make the monthly minimum payment.
After about 6 months to a year, you'll be able to get one with no deposit.

Answer 9

Get a small limit credit card from your bank. Make sure it is small (like 300-500 dollars) so that you can pay it off every month. Start small and work your way up.

Answer 10

Dont fall into the credit card trap. Look around. How many people do you see in debt because they thought the proper was to get credit was to get a credit card. try this:
you dont need credit cards to establish credit. go here for details. its a great article called "why student dont need credit cards" and tells you steps you can take to build credit.
http://seattlepi.nwsource.com/money/1372...