I turned 18 about six months ago, and I absolutely refuse to get a credit card. Even the MOST responsible people I know have gotten themselves into a bind with credit card debt, and I don't want to fall into the same trap. I was told that having a contract with my cell phone provider would build up a small amount of credit, and I was wondering what else could do this?
2006-06-30 04:00:36 · 13 answers · asked by M. V. 2 in Business & Finance ➔ Credit
the most important thing you need to remember when working on your credit is to have a budget and take your time. it will not happen fast. think about what it means to have credit. someone who has good credit is known to be financially reliable. meaning that if a bank loans you money to buy a house that they can be confident that you will pay them back. with that said my advise to you is to stay away from credit cards as the do not earn you much credit anyway. finance an affordable used vehical and pay the payments on time. dont miss any payments. and when your done with that finance a nicer car.
2006-06-30 05:36:38 · answer #1 · answered by thmslln3 2 · 1⤊ 0⤋
It would be a pity not to have the convenience of a credit card and they are perfectly safe if you proceed as I have done, as follows:
Choose a card with the lowest interest rate. The best rates are published in newspaper league tables and on BBC TV,Ceefax2, p250.
Fix your card credit limit at the figure you want. You have to ask the card issuer to do it. That will automatically protect you from over spending. No doubt they will try to give you a higher limit, but do not fall into the trap. Incidentally, never use store cards because their interest rates are frightening. Legalized robbery
After credit cards, the next best thing is an authorized overdraft from the bank and after that is the small bank loan.
Always compare the cost of borrowing by checking the AER%. Anything else is designed to deceive.
You seem to be a sensible girl with money, best luck
2006-06-30 12:09:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
one small, say $250-$500, credit card is good to have for an emergency, and it is still small enough that the time it wll take you to pay it of will not take you 6 lifetimes and millions of dollars.
anyway, if you have a steady job you could try financing a low cost car or a used car or returned lease car. this will allow good credit to build up for you without having to have a credit card, but payments must be made on time. usually a late payments only gets reported to one of or all of the credit agencies when it has exceeded 30 days late, so there is a little wiggle room, but payments really should be made on or before the due date and it is your responsibility to make sure that happens. you could try getting some store credit to buy say a stereo or a small appliance or something that will take you atleast 6 months to pay off. i remember hearing that payments need to be made for atleast 6 months to show a strong payment history to show you know how to pay your bills and on time. you are 18 so you can take your time so as not to get in to trouble. once you get some credit you will be bombarded with credit card applications. i and my kids get these all the time and i dont even open them but just tear them up and toss em'. also don't forget if you do get a credit card if you make the payment late they WILL charge you atleast a $30 late fee each time and maybe once a year they might remove a late fee if requested if you have a good payment history.
2006-06-30 11:22:25 · answer #3 · answered by kaylamay64 4 · 0⤊ 0⤋
You could get a store card if you wanted, or like someone else suggested a gas card or a small loan. The loan would be ideal - rates are low, and you wouldn't have to purchase anything. You could pay the loan with the money received from the bank.
Good for you for not wanting credit cards! :) Keep it that way, trust me.
2006-06-30 11:05:14 · answer #4 · answered by rednecklady17 3 · 0⤊ 0⤋
You can get a visa or mastercard only on a 1000 dollar line of credit-never get a department store credit card they lower your credit limit and use it for small purchases and pay your bill within 30 days and you will not pay interest.If you ever want to buy a house and you will need established credit.
2006-06-30 11:06:27 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Just because you get a credit card does not mean you are required to max it out.
If you think you are so irresponsible to own a credit card, then what makes you think you deserve a good credit rating?
2006-06-30 11:55:02 · answer #6 · answered by SHOOTER586 3 · 0⤊ 0⤋
get a small loan from a bank and deposit it into a new account that you don't use. Then you can use their money to pay them back. It might cost you a few bucks in interest but you will be getting a credit score.
2006-06-30 11:09:25 · answer #7 · answered by reg 1 · 0⤊ 0⤋
I had the same issue when i was 19. There are ways.. I simply bought some furniture on a payment plan at a Badcock and went through a Saturn used car dealer to pay for my car..
2006-06-30 11:08:54 · answer #8 · answered by RUth 2 · 0⤊ 0⤋
Pay your rent early or on time.
You're right on about credit cards.... way to go.
Check out "Financial Peace" by Dave Ramsey
2006-06-30 11:04:26 · answer #9 · answered by Sir J 7 · 0⤊ 0⤋
small loans. you develop whats called "installment" credit.
credit cards are refered to as "revolving" credit.
"installment" credit carries alot more weight then credit cards.And you dont need a big one either.$1500 is good enough.
2006-06-30 11:05:19 · answer #10 · answered by T-Bone W 2 · 0⤊ 0⤋