What is the best way to establish credit if you're under 18?

Question

I have a job and I want to start building good credit.

Answer 1

get a bank account such as a checking account

Answer 2

I got my first credit card at 18 with a very low credit line from First Financial Bank USA. Make small purchases on it monthly (like gas) and then pay it off in full when the bill comes. Pretty soon they will raise the limit and you will start getting all kinds of other applications for cards in the mail... I'm only 23 now and have a better credit score than my mom...however, do not apply for a lot of cards because the more you have the lower your credit score is. If you can't get your own for some reason, try to have a parent get you joined to their account...often times they can get a seperate card made in your name (it's kinda like co-signing for a loan) This helps establish credit also.. good luck.

Answer 3

You are going to get a lot of responses from people who say credit is evil, or you are too immature to have a credit card as a teen.....lots of silly nonsense.

Obviously you have far more sense then that.

I started out with a very good job, and I did the things curious115 suggests. I paid cash for all my things. Paid cash for my first car at 18. By the time I was 23 I had about 40k in the bank (this was in 1980).

I was ready to by my home. Planned on putting 20k down, and using the rest for furniture and other expenses.

I got turned down for my mortgage. Reason? No credit history. I had to do a lot of talking to convince the mortgage company that I was a good credit risk. So obviously having lots of money in the bank doesn't immediately impress people. They want to see that high credit score.

So to all of you people preaching NOT to get credit when you are young, you are fools. A major portion of your credit score involves your credit history. The longer the better.

Since you are not yet 18 you can't legally get credit on your own. It will require a co-signer. So see if your parents will co-sign for a credit card. If you buy a car, get a loan.

Just remember that credit works both ways. If you mess it up, you will find it extremely difficult to get by in life. So never charge what you can't afford to pay off at the end of the month. Early on, keep your credit limit low ($500) until you can dicipline yourself. Having a "fat" credit card with $10k available doesn't impress anyone yet. It can only get you into trouble.

Answer 4

You are not old enough to get credit on your own...you must be 18 because it is a legally binding document. Take a lesson from your parents missery...once you are 18 and you can get credit use it responsibly so that when your 16 year old comes to you and wants to get a credit card he can get it under your name AND you can teach him how to use it responsibly!

Answer 5

you don't need credit except to buy a house everything else pay cash.Don't get trap in to this web of credit use cash.

Answer 6

angelbabi is correct...stay away from credit cards...bank your money, then when you want to buy a car you will know what you can live with price wise.