im 18 years old and would like to start building my credit. where do i start off?

Question

i just turned 18 about 2 and a half months ago and would like to start building credit. i just took out a t-mobile cell phone under my name but dont know if that will help. any other suggestions?

Answer 1

get a couple low interest credit cards and small loans you can pay off fast and that helps..dont do too much to where you cant afford it though
thats what i did and i have great credit

Answer 2

Do you have a checking account? If yes, ask your bank about a credit card. If not, you might want to consider opening an account - shop around for one that doesn't charge you too many fees. You may also be able to get a debit card that ties to your checking account - it's not a credit card, but it is a step in the right direction. There are credit cards out there that make you put a certain amount in their account as back up for the card - avoid them if possible. There are better ways to get a card. If you're going to college you will probably get many offers - college students are a good market for credit card companies. When you get a card offer, read the print - what fees do they charge, etc. Most cards will charge a fee if you get a cash advance using the card, and the interest will start from the day of the cash advance instead of the due date. When you get your card, pay it off each month! This way you'll avoid the fees and interest. Don't use your card if you don't have the money to pay for the item. Good luck!

Answer 3

good start! if you have a credit union(preferably) of current bank, go there and get a credit card. and use it as long as you can pay it back. creditors (mainly mortgages) will look at how credit you have been extended (credit limit) and how much you have used and paid back.

Ex: Have a $1000 limit. You want to buy a TV (or another big ticket item that you save up to buy), put it on the card (knowing that you can afford it and have the money set aside) and pay half balance one month and the other half the next month.

This will do a few things: 1. Show that you have the ability to make on time payments (good for credit score)2.Show that you can use a substantial amount of credit and pay it back (this will reflect with your bank[credit card holder]) 3. After 1 & 2 take place, your bank will allow you to increase you limit of the card which will 4. increase you credit score

FYI:

There are 5 major attributing factors to your credit. They are weighted as: 1. 35% is your payment history (paying bills on time) 2. 30% is your debt to credit ratio (ex credit card: $3000 bal with $10000 limit = 30% ratio) 3.15% length of history (how long you ve had a credit card/car loan open) 4. amount of credit limits (the higher the limits the more "credit worthy" you are) 5. amount of times your credit gets pulled (keep to less than 4/mo!)

There are other factors that affect your credit but these are the big ones!

Answer 4

The cell phone account is a good start. You can probably get a credit card with about a $200 limit. You might qualify for a small bank loan with a co-signer.
Avoid payday loans - They're a big rip-off & can lead to real trouble.
Just be careful not to take on more debt than you can handle or it'll defeat the purpose.

Answer 5

get 3 secured credit cards. This will cost you around $500-$1000. you get 3 different cards for three different amounts, say one for 200 one for 300 one for 500. dont use more than 50% of the balance each month, and pay off in full, after 12 months you will have 700+ credit scores and will have perfect credit. cell phones dont show up on credit, and its hard to get unsecured credit cards with no credit. I work with people and their credit, this si the best way to start off, and will only cost you $500-$1000 which will be refunded to you when you cancel the accounts after you establish your credit

Answer 6

Sears is really good at issuing cards to young people.

I'd start with a Department Store credit card first since they are somewhat easy to get and you won't be tempted to splurge like you would with a Visa or Mastercard.

Buy a few things that aren't really that expensive and then pay them off over time.

65% of your credit score comes from how well you pay your periodic bills and how much outstanding credit you have.

If you are maxed out and pay late, you will screw yourself.

Don't fall into that trap.

Be careful with what you buy and be damn sure you pay the bill ONTIME!!!!!!

Your biggest drawback is a lack of a length of credit history....however since its only 15% of your score, it doesn't hurt you too bad.

By the way....an earlier poster is wrong....having money in the bank does NOTHING to your credit score.

The only factors are: types of credit, how well you pay your monthly payments, how much outstanding credit you have and length of payment history.

Answer 7

Open up a checking account at you local bank and make sure you pay on your cell bill on time.

I will also suggust that at this point you DO NOT get a major credit card. I feel that credit cards are a way, if used improperly, to start and keep americans in debt.

I wish you luck so head on tomorrow morning and open up a checking account.

Answer 8

That cell phone will help out greatly. I'd actually just stick with that. As long as you pay all your bills for your phone on time, you'll build good credit. Very smart of you.

I also believe having money in the bank raises credit.

Answer 9

Fill out a department store credit application and use it to buy something there if you have to. That's how we got started. Or, if you're a student in a college or tech school, believe me, they'll send you pre-approved invitations! Just be very, very careful, O.K.? This is not money. This is just their belief that they can get your money. Understand the difference?