How do i make my credit score? i just turned 18 and every one keeps tellin me i should get a credit card?

Question

but HOW??

Answer 1

Applying for a credit card is a good idea. It doesn't have to be a regular credit card but one that you can use as a debit card. The money you put on it is the money you have available to spend. Of course, you will have monthly fees and finance charges but if you pay your bill on time every month, it will help raise your credit score or help establish credit.

Here are a few sites that my hubby used to get the 2 cards that he has. They raised his credit enough for use to be able to get a loan on a $75,000 4 bedroom house.

www.rewards660.com--$40 monthly payment
www.firstpremierbank.com--$20 monthly payment

With Rewards660 you get a credit limit raise every three months if you make your payments on time. Good luck!

Answer 2

Credit is extremely important. Is there a store that you spend money at regularly? Do they have a charge card? If so, apply for one of those. Then, instead of paying cash, use the card. Note I said "instead of" not "in addition to." You should aim to pay the balance off in full every month. This will steadily build your credit score so that you can fet better deals in future.

I have seen it written that there are two good reasons for using credit (and a third is borderline). The first is buying a house. Much better than renting. Building a good credit score is useful for getting a good rate.

The other type of good credit is a student loan. A good college education can get you a better job.

Both of these types of credit enhance your wealth.

The borderline one is a car loan. You should think very carefully before taking out too large a car loan. By the way, I'm up to my eyes in debt and only seeing some light at the end of the tunnel. I wish somebody had taught me how to manage credit when I was 18.

I got most of the information from the website below. It is written in plain English, which helps. Take a look.

Answer 3

You don't make your own credit score.
The credit bureaus make it for you.

Since you have not used credit before, your score will show up as a "999" which means 'no credit history'.

Start small and I mean very small.

Either get a Sears Card (They are known for easy credit for college kids) or a secured VISA or MasterCard.

Then, only spend what you can afford to pay off each month, so that you don't get in the habit of running a balance.

But a little bit each month and always pay it off.

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

If you max out your card(s) and then are late making payments, you are going to really screw yourself.

The only thing hurting you right now is that you have a lack of payment history, but this only accounts for 15% of your credit score. It knocks a lot of points off your score right away when you get your first card, but every month you make good payments, your score will keep going up.

I've had credit for 22 years and that's STILL not long enough to quality for the maximum number of points added. Credit bureaus want at least a 30 year payment history to be consider a good payment history (which qualifies your for maximum points on your credit score).

Answer 4

Apply for a credit card and use it often and responsibility. Try to pay the balance off each month (do not think of it as a free loan or you'll get a credit score you don't want). If you have trouble getting approved for a credit card, ask to secure it with a savings account (say $500 for starters).
In addition, you could take out a small loan, if you need to, and pay that back over time.
Essentially any debt/loan you take and repay helps build your credit score, but as a rule, only use it when you need to (for the big purchases like cars and homes - for most everything else, try to save and you'll be better off in the long run).

To find Credit Card issuers, do a google search with the terms "~best rated credit cards" (the tilde(~) will look for synonyms. I don't make any claim which one is better. Look for low interest, no annual fees, protection, etc.

AND DON'T get a crap Revolving Credit Card from JC Penny's or other department stores (they only work in that store).
AND DEBIT CARDS are NOT Credit Cards - they use money from your bank account - my 14 year old has one of these.

Answer 5

Apply for a credit card online. Choose what type of card best fits you. Simply do a yahoo search for credit cards or ask friends and family what they did. Getting a credit card will help establish some credit but if you are not responsible it could be the worst thing that you ever do! So be smart about it!

Answer 6

Apply for one at a store whose products you may use - like one of the major department stores. Just get the one, and use it once in a while. Don't rack up anything big, but make a few purchases, and ensure that you pay them off well before the deadline, so you don't have to pay interest charges. Do that for a while, and then apply for one of the 'all-purpose' cards, like VISA, MasterCharge or whatever. Same thing with that one. Use it carefully, keep the balance paid off. That's how you build your credit rating. Later, when you need to make a major purchase, you'll have a good credit record to back it up.

Answer 7

Get your first card, use it once a month and always pay it off in full. In about a year or so, you will get offers for other ones. Apply for one or two more, use each of them on occasion. Your credit score will rapidly become very good, especially if you have MORE credit than you ever use. However, be sure you don't get those credit cards that require you to pay annual fees or deposit money with them.

Answer 8

well building your credit is good, but you gotta watch it, because it'll get outta hand REEEEAAALL quick, If you live in an area that has credit unions try getting one through there, because credit unions can usually get better deals (not to mention that their credit rates are usually lower than a banks) and make better deals with their members than Banks, and plus it makes it easier to get other loans through them than a bank will.

but ONLY one credit card, and one with a very low limit to keep yourself in check like around $500 dollars to begin with and never more than $5,000 because late fees will eat you for lunch!

and never use it to pay for something more than you can't pay off in a two month payment, because ANY credit card will charge you the interest for the unpaid balance (which can be 15% or more on the dollar), because when you pay the minimum fee, only about a third of what you pay goes back to pay the balance and the rest gets charged the interest.

Credit cards are good for emergencies for the most part. but you gotta watch yourself because your credit score means everything when getting a loan for a car, house, student loan for college or anything you'll borrow money on later in life.

and check your credit score every 3 to 6 months to see if there's any possible identity theft, or charges on your card that you know you didn't make, by holding on to the reciept at least until you get your bill summary and compare the two for differences even subtle ones.

get a few applications from different ones card companies and compare their interest rates to find the lowest one, and don't get suckered by intrductory rates, that's just to get you in and they can hit you with heavy fees later on.

good luck

and as tnoe said, you can also get one that's a debit card through the credit union through a checking account (you'll need to open one to get a card that works both ways) and as long as you have the money in the account it'll pay it, if it doesn't they'll charge you for an over draft. and this way, it'll help you keep yourself in check.

also, setting up a savings account wouldn't hurt either even if it's $5 a week or every 2 weeks, and you don't touch it; it'll build up.

Answer 9

The best way In my opinion is to get a credit card...of course pay it on time..your credit limit may only be $250 or $500 but they report on time payments to your credit...making your score go higher..I think the highest score is 900..the worst 400..750 average..you want to keep a high score..that way when you buy something like a car or home your apr (%) that you pay is low:)...It helped when I went and financed my bed..they also report..just always be on time with payments..but having toooo many cards can bring your score down..also dont apply for too many they also show up on your report and you may be denied credit..and it brings your score down..when you apply for things it stays on your credit for 5 years..Hope this helped ya...

Answer 10

You shouldn't unless you have a good job and make enough to pay it off, because if you don't pay it off you'll get bad credit that will stick with you. Get a Debit card. Like i just started an account at Citizens Bank.

But if you apply for anything you must make sure that you have someone go with you that really understands and can help you, you must be careful that you don't get screwed over with fees and stuff. Good Luck!