how can i build my credit once i turn 18yrs old?

Answer 1

Get a small credit card! Pay it on time!

Answer 2

The best way to do it is not to get a credit card! People are taught that you have to have a credit card to have a credit history. Pay in cash and you won't need to. Save up to buy a car. If you are on a job for 2 years you can get a mortage. If you get a credit card will you have debt that most people regret.

Here is something to think about. What would you rather do? Buy an item for $100 cash or use a credit card on the same item and you will end up paying $117-$145. Think about what you can do with the extra $17-45. Then when you pay in cash you don't have to think about it again. When you use a credit card you will be paying for it month after month. Even if you do pay it off every month why wait for a bill and what would happen if you are out of work, then you have late penelaties afterwards. Good Luck.

Answer 3

To build credit, you must have credit. This sounds silly, but that's exactly what you must do -- make payments to establish that you are a reliable person to lend to. Basically, you will need a credit card. To tell you to be careful with credit is like telling you to be careful when playing with fire! Credit can be used to your benefit, but you must show self-restraint and discipline. An important thing to remember is that you want to be VERY selective about opening a credit account. For example, just because you'd save 15% off a single purchase at Macy's does NOT make it worthwhile to open a credit card there. First of all, most store credit cards feature higher interest rates. Second, you can only use them at that store, so they are of little general use to you.
My recommendation is that you set up a bank account if you have not already done so, and then speak to a bank representative about getting a credit card that is tied into the balance in that bank account. If the credit limit on the card is kept low, the risk that you'll go on a crazy shopping spree is controlled, too, and control is the name of the game! By "guaranteeing" the credit on the credit card with money in a bank savings account, the creditor has less of a risk, so your interest rate should be lower. If you truly want to learn more, google Suzy Ormond and read up on her financial info. She speaks plain english, and is very, very intelligent. You are wise to start early. I thought I was "doing good" by not having a credit card of my own all through college. I thought my rend payments and bill payments being made on time for years were enough to establish good credit in my name. Boy was I surprised when I wanted to get my first car loan. I had NO CREDIT HISTORY! So, getting a credit card is a good place to start, but, like I said, try to never have more than 3 cards -- ever -- because believe it or not, when you close a credit card, your FICO (credit) score is actually docked a few points!! Good luck!

Answer 4

Apply for a credit card. ( most credit card companies are all too happy to oblige) At first they will give you a small credit limit. Use the card and then pay off the balance each month. Soon the credit card company will see that you have honorable intentions and will offer you a large credit line. Continue to make all your payments on time and make every effort to pay the balance off each month to avoid interest. Soon, you will establish credit.

Beware....a credit card can easily get out of hand. When you use plastic as a form of payment, sometimes it doesn't even seem like money until that bill arrives and snaps you back to reality!

Answer 5

Always think in terms of a paper trail. All you do is put on paper. Bank accounts, transactions, Everything. The better the trail the better the credit rating. So, if you was to have a bank account and keep it active. Placing money in it regularly. and removing it, yet maintaining a good balance, it helps. Along with, a small cradit card loan that you pay off each month. Other things that help are loans. Such as, buying something and making payments on it. Those people could vauge for you later when you want to make a larger purchase.

Answer 6

Get a credit card & pay it on time...making larger than the minimum payments is good too. I did that & my $800 limit was raised to $1300. Another good thing is getting a car or a cell phone in your name if you do not already have one. I did all that to build my credit & at 23 years old mine is still VERY good.

Answer 7

Very carefully. Pay all payments on time, every month. Get a visa, use it gently, make monthly payments. IF you can afford it, buy a car with a down payment, pay all payments ON TIME. That is how you build good credit. Do NOT be late, even on one payment. Do NOT use credit unwisely, do not get yourself in over your head. Do NOT stretch your budget. Those things you think you want right now....you really don't want them as badly as you think.

Answer 8

There are a few ways: get a credit card and pay it off on time, buy a car and make payments on time... etc