How can I start my credit? I just turned 18.?

Question

I just turned 18 and im in college, and I have applied for student visas, discover, and american express cards, but have been denied because i have no credit. isnt that what the student card is for? students with limited or no credit? anyway, ive tried everything, applied for stores in the mall too, but have been denied. i dunno what to do, i guess ill never have credit.

Answer 1

Can you get a few hundred together?, say 500 ( not sure which country you live in). Open a Bank account with the 500, then apply for a 400 loan, take this money go to an other Bank, open a bank account with the 400 take a loan for 300, then the same again at an other bank taking a loan for 200. The banks should grant the loans as you have the money in your account to cover the loan. Take them over say a year, you must make the repayments on time!. At the end of a year you will have a good credit rating.

Answer 2

No, there's hope. I am suprised you'r getting turned down for student visas. Are you signing up at sign up tables at your school? Get a free copy of your credit report at http://annualcreditreport.com and see where you stand, most likely the only things on your report at this time will be inquiries. However there's a slight change there there's something on there working against you causing you to be denied.

If you can't get a student card then try an alternative method of establishing credit such as getting a secured card or being added as an authorized user on someone else's card. For tips on building credit from scratch see http://creditwisdom.blogspot.com/2006/09/building-credit-from-scratch.html

Answer 3

Don't worry. You can get your credit started. :) Try this...

Go to your local bank or if you have one a credit union. Ask if you can appy for a "secured" credit card. You can also look for online banks that offer secured credit cards. A secured card is "secured" by your own money.

Usually you start out with a $200.00 secured credit card and then after 6 months if you have kept your account in good standing they will increase your credit. After a year of good standing some will no longer require the security of your money.

A secured credit card is considered as a non-secured card as far as your credit report goes. So, you will be building good credit as you use your secured card just like you would with any card. :)

My son is 20 and also had no credit. Actually no credit is so nice... you have no credit debt lol! Anyway, I did this with him and this past week he called me up all excited because he was able to buy a new couch set from our local furnature store.

Since you are just starting out, I'd also like to tell you what I've raised my son to do... be very careful about your credit. Never look at what you can buy on credit as what your budget can afford regarding the monthly payment.

For instance. My son purchased the couch. The total cost was a little over $700.00. He put $300.00 down and his monthly payment is $40.00. He is going to pay $150.00 for two months and then he is going to pay the rest off over the next 4 months. So, the interest he will be paying is very little over the next 6 months. He will be establishing his credit, but he is not only paying the monthly requirement.

If you only pay the monthly requirement you will end up paying more than the origional cost of the item in interest. So, enjoy your no debt status and do you best to keep it that way. Never buy just because credit allows you to buy. If you can pay it off in 6 months, that is when you can afford to buy it. :)

Hope this helps. Best Wishes on your finding and establishing good credit.

Answer 4

That's okay. You don't need credit.

Get a part time job while school is in session. With your first paycheck, open up a checking account and get a debit card tied to your checking account. And there you go.

It's much easier to learn how to be responsible with money when you're using a checking account over a credit card.

Answer 5

If you can avoid it, never use your credit card. Ever.

If you do use them, make sure to pay the balance off at the end of the month. Interest rates are killer on those things.

You're better bet is to get loans for things like cars, then houses.

Pay your bills on time, and never be late.

Since you're young and inexperienced, I'm guessing you'll ignore this advice. If not, you'll do well.

Answer 6

There are credit cards out there that are specifically for students. Yahoo Finance has a site that details various credit card offers. Or, search for 'student credit cards' on your search engine of choice.
Whatever you do - DO NOT overextend yourself!! I'm 36 and STILL trying to get rid of the bad credit I racked up for myself back in college!!!!

Answer 7

First you need a checking account, keep up with it and don,t ever write a check unless the money is in the bank. then try the department stores again. credit is like respect, you have to earn it.

Answer 8

Same thing happened to me a few months ago. I was able to open a netbank account then now i apply at the same banks that turn me down and now I'm approved so get a net netbank account first i think they do credit reporting see what happens

Answer 9

Get someone to co-sign a small loan with you. Make sure you are capable of the payments. Your name will be the main borrower and will get credit for the payments (if you do not pay on time you AND the co-signer get the bad credit).

Answer 10

to start a credit history you must first borrow money
to borrow money you must have a good credit history

as usual you can only borrow money if you dont need it
if you need money nobody will give you any

it is the way finance works