what is a good way to start credit?

Question

im only 18 i 'm not starting college until next year and i already have a car. i need other options i heard getting a payday loan or something might help

i dont have any credit history do dept. stores and gas cards look for that?

Answer 1

The best way to start credit is to hands down get a credit card. You won't get anything good, but you don't want to shoot for the stars just yet anyhow. Try to get a department store card, like a Sears or a Target card, and use it lightly to moderately, always paying on time. You could also get a secured credit card, where you pay the bank in advance, and you have that balance to use the card against. Kind of lame, but it's a way to get a credit history going, until you don't have to do that.

In about six months time, you'll start getting more and more decent offers from credit companies. Then you can try for a line of credit at your bank (it's like a permission to overdraw to certain extent, up to a certain credit limit.)

After about two years of not messing up, being on time and not defaulting on anything, the really good offers will start to show up and you'll have a good amount of choice. Good luck!

Answer 2

WHATEVER U DO, DO NOT GET A QUICK CASH LOAN!!!!

apply for a credit card with capital one or throught a credit union! also see what other programs the credit union has for people ur age! if u get a cc don't pay it off every month, u need about 6 mths of payments and leave a small balance of the card. this establishes the credit history. a car is a great way to boost ur credit score. try a department store cc, it has a higher interest rate but they r easy to get! then in about a year or so u can transfer the balance to a lower interest cc and be well on ur way to a good credit score!!u may want to order a copy of ur credit report from http://www.annualcreditreport.com and go from there!

Answer 3

The best way to start your credit is to get a student credit card. It will offer a small credit line to get started ($500-1000). Use it for your small expenses and pay it off every month. After 6-9 months, you can ask for a credit line increase if you need it.

Once you have some history with the credit card, you can open 1-2 other accounts. These can be store cards (Macy's, Sears, etc), utilities (phone, power, etc) or other credit (car, etc). Make sure you don't open too many accounts and keep your payments up to date.

Do that and you'll have an excellent FICO score.

Answer 4

Get a department store credit card - one of the smaller department stores.

Purchase ONLY a few bucks worth of merchandise here and there - if you buy panty hose monthly, buy them there - that way you're not just spending a lot of money. It will cost a bit more, but it will help your credit if you pay the bill off every month.

Or, get a gas card, and get only what you'd normally get in gas - take that week's gas money and put it somewhere you WON'T be tempted to get into it. At the end of the month, take your cash to Amscot for a free money order and pay the balance off.

Make sure, however, that there's no annual fee for the card. Those can get pretty steep.

Good luck!

Answer 5

OH! Don't get a payday loan or a car title loan! They are crappy for the economy and have terrible rates and fees.

To build credit:
you need a bank account and to be in school or a reasonable income to get approved. If you aren't getting approved, get a secured credit card (they seem silly, I know) because after using it for a while CC companies will approve you.

Or you could lie and say you are in school before you actually are. I have known people who have done this, but they are careful to pay everything off on time so they didn't get investigated/caught.

Answer 6

Apply for a credit card that is backed up by your bank account for a low credit limit (like $500). Then buy something and pay the bill when it comes. Do that for several months and you'll be on the way to establishing credit. Check out www.discovercard.com for one, but there are many.

Answer 7

STAY WAY FROM PAYDAY LOANS. since you're starting college, wherever the main quad or main gathering area is, there'll be plenty of people looking for kids to sign up for cards. sign up for one and ONLY ONE. use it sparingly, only for gas (if you have a car) and groceries. no cd's, clothes or anything like that. although you will be tempted to believe me. pay off the full balance each and every month and DO NOT pay late. keep this up for ever really and your score will be great once you get to your junior year.

Answer 8

Don't just get a credit card. You have to make sure that you make your payments on time monthly and pay more than the minimum amount. This is what will give you a good credit record.

Answer 9

payday loans won't help...they don't check credit
get a credit card with a small credit limit (credit unions are good for this, and Capital One also takes some borrowers in your circumstance...but a credit union will give you a lower rate)

Answer 10

Get one credit card - only one - and put a monthly, recurring charge on it, like a cell phone bill. Then lock it up! Don't use it, just let it charge that one bill and pay it off completely each month. You'll be on your way.

Don't get a credit charge if you think you will use it for other purposes.