Can a person under 18 years of age build up a credit history?

Question

I'm in California, USA. I am wondering if mistakes someone makes when they are under 18 can affect their credit later on.
Example: Someone is sent to a collections agency and they do not pay.

Would something like that affect a person later on in life or not?

This question is mostly directed towards receiving bad marks on your history.

Answer 1

Yes it can. Ex. Some parents use their children's social security since the parent's credit is bad and screw up the childs credit history. That does show up.

Answer 2

Although those under the age of 18 are not allowed to enter into a financial contract, and can use that as a way to avoid an otherwise legal debt, it does indeed find it's way to your credit report. It's not like an underage criminal record that gets sealed.

The best credit is NOT no credit. And the best way to establish credit is not some high interest credit card that will take anyone no matter what.

The best way to establish credit it to start a checking account, and a savings account, and get into a relationship with your bank. Your first loan can be for a small amount and secured by the amount in your savings account. Never be late with a payment...that will be the best start.

Answer 3

Negative collections will make a big impact on your credit. If you are under the ago of 18 you can fight the collection because legally you cannot be held responsible for your financial status. However, your parents are and they could throw this collection to your parents. Also, most collection agencies threaten to report their matters to your credit, but most indeed do not. You probably should just pay off the collection just to be safe. Some sound advice: spend wisely :)

Answer 4

Here i can definitely say yes it does affect the person credit. Had it happen to me due to a family member charging mysterious bills in my name and i was only 16. It will put a damper....and even lower the credit store for sure if payments are not kept in a timely manner and on time. They thought it wasn't harmful because "everyone needs credit" but....think again. Credit collection agency's will put it on your record and yes...it stays for up to 7 years. Just like any bad debit...you will be looked down on unless it was reported properly to the Credit Bureau's. Even the long drawn out process of getting police and FTC reports done to make sure it won't hurt as bad in the long run. But make sure that if it is happening or has happened to report at least to the Credit Bureau's. Its considered Identity theft any kind of a way you put it.

Answer 5

Definitely.

Start with a secured credit card (secured by a savings account that you open with the bank). These are usually around $300 and are an excellent way to build credit WITHOUT stepping beyond your means.

After that, a small car loan is also very good.

After just a couple of years you can establish a very nice credit rating.

Answer 6

well, what an answer that was - I don't have an answer but would like to see some better ones than that given. My daughter is trying the same although she has 'no credit - good or bad', she wants to start building a good credit history. I've told her that the only good credit is 'no credit' but she is young and can't really hear me from 'this age'.

Answer 7

Yes they can but you can get out of it. What yo do is apply for a new card get an application attach a note or letter to it saying how bad yo were and how you have turned over a new leaf now that you are older. Make sure that it is stappled then it won't go through the computer it has to be hand read by a person who will make the decision.

Answer 8

I would say yes, if the bill was in that person's name. Everything you do affects your credit. Even one day late on a payment can affect it. You can get a free credit score on certain webistes. I think if you are under 18 and want to build credit, have you're parents add you're name on to a credit card. Their good payment habits will go under you're name too.

Answer 9

Having a job, and purchasing a secured necessity such as a low cost auto on bank credit is a good way to begin a credit history. May need co-signer for first amount of loan though. Talk to bank. Having a manageable and paid on time credit is a useful asset when you are older. For example many insurance companies want to rate your car/home rates on your credit history.

Answer 10

better down money dont continually help. I had no credit and virtually a 50% down charge and my financial enterprise nonetheless needed a co-signer. pupil loans arent going to paintings because of the fact they're despatched right this moment to the college. perhaps try financing with the aid of a dealership or some thing perhaps.