2006-07-05 06:16:21 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
First of all, opening an account that would give you credit history is legally impossible in the United States before the age of 18. Secondly, once you are out of high school is the best time to establish a revolving credit account, otherwise known as a credit card since credit card company's are willing to take the risk on you with the assumption that you will be entering the workforce soon. Keeping a small balance relative to the total credit limit is one component to getting a good credit score. Another important piece is how long the account is open; the longer the credit relationship is open with one company, the better it reflects on you and your credit history. The other important part of acquiring a good credit score is making the monthly payment on time each billing cycle.
It is a popular misconception that your banking depository relationships (savings and checking accounts) have an impact on your credit history. Having a deposit account with a bank for a period of time will establish a relationship with that bank, and that institution will be more likely to grant credit to you, but misusing a deposit account by overdrawing it will only prevent you from opening further deposit accounts.
2006-07-05 13:40:22 · answer #1 · answered by Mike H 2 · 1⤊ 0⤋
Having accounts in your own name for example a cell phone or a co-signed account such as a credit card. These will help you establish a credit rating. You must always pay your bills on time! Always! and use the account responsibly. Also make sure you have a bank account and never let it go into overdraft or bounce any checks. It is possible to establish a credit rating in your teens and many do damage without even knowing it.
2006-07-05 06:23:45 · answer #2 · answered by jaybird 4 · 0⤊ 0⤋
I wouldn't get a teen started with credit yet. They don't know how serious they can ruin their credit and their future if they mess up. Start with a budget first and see how that goes to teach responsibility. Teens think credit is free.
2006-07-05 06:21:09 · answer #3 · answered by Fartbuster 4 · 0⤊ 2⤋
Save up some money, start a bank account. After a short time, apply for a signature loan.
2006-07-05 06:20:16 · answer #4 · answered by JohnDeereGreen 2 · 0⤊ 0⤋
start putting money in a savings account.
2006-07-05 06:20:41 · answer #5 · answered by Wild seed 4 · 0⤊ 0⤋
Don't do anything...illegal and just keep up with all your payments when you have a car, rent, or mortgage.
2006-07-05 06:20:34 · answer #6 · answered by House, M.D. 4 · 0⤊ 0⤋