I'm 18 years old. What's the best way to build my credit without drowning in debt?

Answer 1

The best way is to get a credit card with a small limit and charge two or three things a month, like groceries and gas. Put these items down in your checkbook like you have already paid for them so you wont get behind. Pay off these items before the due date, credit companies really like this. Good Luck!

Answer 2

You asked for the BEST way. Not knowing if you live with parents or what, I must make some assumptions. You can build credit with utilities if you have your own living space and the rent and utilities are in your name. Pay ON TIME, always. The key is to buy things on credit that you can pay cash for. That way, you will not run the risk of late payments. Normally, potential creditors look at the past 24 months of credit history as an indication of credit worthiness. It may take that long to build a good credit history. Most of the previous suggestions are valid depending on your temperament.
Important : 20 on-time payments with 1 late (30 days or more) payment is to be avoided. The one late payment will pull your credit score down.

Answer 3

First of all, get a credit card, and use it to buy things VERY inexpensive, like $20.00 a month, and then pay the total balance every month. Get a checking account, and never write hot checks! Balance your check book every time you buy something, this will make it easier to pay bills.
Always pay your bills on time, including your electric, water, rent, everything! If you are ever late, call in and ask for a grace period, and never be late 30 days. After 30 days, the company can put it on your credit report.
If you decide to buy a car, get one that you can pay off quick. Pay more than your minimum payment every month, that jumps up your credit score.
Building credit takes time, and not having much credit is always better than having bad credit. Don't overextend yourself, and never give in to the countless credit card offers you recieve. Pick one with a low apr and no annual fees to start off with and stick to it. The more times you pay on time and your total balance, the higher your credit line goes, which in turn, builds your credit.

Answer 4

get a credit card with a low limit on it, say 1,000 dollars. Then use it a couple times a month to eat out. Not for anything else, then pay it off right away each month. This will allow you to establish credit but keep you from being able to rack up a huge bill and be in debt. Good luck!

Answer 5

If you do not have a credit card...start by applying for a secured credit card. It's not credit card per se..but it's linked to your savings account. You limit is whatever you have in your savings account. But you pay penalty and APR. the whole shebang...just like credit card..

This will help you establish a credit history...and then you will be in the radar of the Credit Card issuing banks.

Make every effort to payoff your monthly balance...and NEVER EVER miss a payment. Even if you're not able to make the entire balance in full, make damn sure you make the minimum payment required on time..

Good Luck and best wishes

Answer 6

Get a credit card -- but ONLY use it on occasion and PAY IT OFF IMMEDIATELY. Do not buy things you can't actually pay for. If you don't qualify for a major credit card, start with a department store -- Target or JC Panney.

Don't just make payments -- pay the whole balance. Interest is where you get in trouble. If you make the minimum payment, it takes forever to pay something off: that's how credit card companies make their money.

Answer 7

Above are correct. Use a Credit Card for convenience and not actually for borrowing money to buy things. Pay off Every month so you avoid Interest Charges. Remember, this is a trap used by banks to get you into high interest debt. They make money on this stuff from those not smart enough to handle debt and manage their money. So, BE SMART!!!!!! Debt no fun and you just give away hard earned money just to get something quicker.

Answer 8

Don't drown in debt!!!

Don't live outside of your means.

Get a credit card, make the payments on time always (and try to pay the full balance).

Answer 9

Nice to see someone your age, planning for the future. One best way, is to get a fixed limit credit card. Say $1000.00 or $500.00 something that you can easily handle.Buy small items on credit, make the payments on time, and your credit will begin to be established.
Just keep your eyes on the prize and don't over spend.
Good luck, you're thinking right.

Answer 10

Im 18 too, and i recently got a couple of credit cards but i try my best best to not be a spend drift. In my first month i bought and ipod adapter and a father's day gift. Jus buy things that u would normally be able to pay with cash and ull be good as long as u pay ur bills in full.