I'm 18 and a first year college student who wants to build credit, what is best,gas,major or store to apply

Question

first time applying for credit

Answer 1

For major cards, go with the student cards. You will have some great rewards with them.

Try Citi. They usually approve students with out credit history.
You might get a limit between $300 and $1500.

Dividend Platinum Select and mtvU Platinum Select seem to have the best rewards.

Stay with prime lenders. That way not only will the cards grow with you, but you will be building a good history with the prime companys.

Try to stay with only one to three major cards. I wouldn't recommend any more than that for now.

As for gas cards, Chevron/Texaco has a great builder/rebuilder card if you don't qualify for the regular gas card.

For store cards, I would suggest going with the stores that you like to shop at. Again, limit your cards.

After you graduate, you will have a lot of great history to build on. (as long as you keep your payments up and utilization down)

Answer 2

I would suggest opening a Visa or Mastercard if you can get approval. Your local bank or credit union may have cards available. If you cannot get approved for one of these major credit cards, then look into getting one credit card from a store you frequent, probably your best bet is a store such as Target or a grocery chain. If you get one from your favorite clothing store, it might be too tempting to charge too much. Once you have held the store card for a few months, you should not have a problem obtaining a major credit card. After you obtain the major credit card, you should weigh carefully your options for any store credit cards, if the benefit of obtaining the card is worth the hassle and possible expense of another account.

Answer 3

When I entered college 3 years ago I applied for a credit card through Bank of America (Visa). I have kept good with all my payments and every year they have added $600 to my limit (it also started at $600). I have since been able to apply for other things (loans, additional credit cards) and have been accepted because I have several years of credit and good standing. In any event, getting a major credit card is very helpful, and limiting the amount of credit cards is also helpful.

Answer 4

The best way to establish credit is to open a revolving account first, most commonly used at department stores & such. The key is to have 3 years of residence at one address & 3 years of steady work listed on the application. Also, consider all your monthly expenses. Your income must be at least 1.5 times what you expend. Anything less than that, it's a 50/50 chance of approval.

Answer 5

Most store cards want to see another form of id with a visa log on it. If you have an account with a bank you can show them your debt card. Most credit card copanies charge a fee to be a member. So if you are not going to use the card dont' get too many. And besides have alot of credit cards is not the best thing.

Answer 6

You can also ask someone who has really good credit to add you on one of there cards as a Authorized user it will go on your credit. I have a younger sister who at the age of 20 had a 720 rating and just last month at age of 22 bought her first house. All thanks to my mom. She told me today when she first saw her credit report she thought there was something wrong she didn't remember having a credit card with a very high limit :) not knowing it was my mothers card :)

Answer 7

Exxon is good, but you need to be careful and understand with one mistake your intrest rate can sky rocket and there will be nothing you can do about it. Some colleges have workshops on it sometime, you should see if your school offers one and go to it! The rent to own stores are good too, just make sure you will be able to pay the bill to keep yourself out of debt. Read the fine print, and if you don't understand ask someone who may know.

Answer 8

A credit card should be good start, there are some student friendly credit card that has rebate for gas.

Answer 9

paying off a loan though a bank is the best way to build credit take out a small loan and repay it (maybe a car loan?)

Answer 10

read tips on debt/credit and credit scores on this site