i bought a motorcycle under my name, i got a loan from school, and i have a job that gets me through, just barely like most college students. I have no credit, and would like to get a good credit score relatively quick to get a credit card as emergency money. I know most people my age spend money like crazy, but i do not as between school and work, theres only time for a movie, and i just enjoy time with friends. can anyone give a kid some advise?
2006-11-13 15:13:55 · 6 answers · asked by big_joe818 2 in Business & Finance ➔ Credit
well from my experience (i'm 23 but have been in the marines the past 5 yrs.) buying a car didn't help my credit much because the only people that would give me a credit card was my bank so go there first. if you are good w/ money like me then using it more builds credit faster. but make sure starting off just to use it for like fuel or something you buy like once or twice a month and make sure to pay it off at the end of your monthly statement cycle. before long everybody under the sun will be trying to give you their credit card. dont get a ton of credit cards cause it will be harder to manage. most starting limits are like 500 to 1,000 so you should be allright.
2006-11-13 15:22:25 · answer #1 · answered by Ben S 3 · 0⤊ 0⤋
Just one thought to counter what the previous writer said ... I agreed with most of his points except one ... NEVER ... pay to get a copy of your credit reports from any company. The federal government created a new law called the Fact Act last year that legally entitles you to get a free copy of your credit report from all three credit bureaus once per year. This isn't only a good service .. it's a GREAT idea ... not only to keep tabs on your credit status ... but also to make sure you're not the victim of identity theft or fraud which can take years to fix. Get your free credit reports by answering a couple of easy questions at the following website.
www.annualcreditreport.com
Note: While they will give you your credit report for free ... they won't give you your "FICA" score ... basically your credit worthiness score for free. All three bureaus will charge you between 7 and 15 dollars to get this score ... but if you don't know your score ... it's worth the money to get the score just so you know where you stand.
Good Luck.
2006-11-14 00:40:17 · answer #2 · answered by Informed1 4 · 0⤊ 0⤋
This is the real way to build credit fast. Ask your parents or anyone that you are sure that has excellent credit to put you on 1 or 2 credit cards as an authorized user. This will put their entire credit card history onto your credit report. This will give you instant credit scores. It takes around 2 weeks to 30 days to report. Then after the 30 days ask for your credit report(www.experian.com, equifax.com, transunion.com). If you have to pay online for the report than do so from the reporting companies and not from some company looking to make a quick buck from you. If their cards are reporting and everything looks good. You want to calculate to see if they are over the 35% threshold. If they are you want to remind them that their credit scores will go down if they don't pay down the cards. You never want to go over 35% of your credit limit at any one time. So for every $100 you must allow yourself to spend $35.
Otherwise you can get a secured credit card and pay on those types of cards. National City is the best one to have or get a Visa check card from your current bank that is attached to your checking account. Check with the bank if they report your spending habits to the 3 reporting companies if you use the check card as a credit card instead of a debit card. It is very important.
2006-11-14 00:13:32 · answer #3 · answered by steve s 3 · 0⤊ 0⤋
A credit score takes time...and I have to laugh a bit because I was In your situation one time. Credit is like a drug...." I got a master card...SO cool" well I Will be carefull and make my payments..." wow a cool sound system....LCD TV iPod.....Laptop..." its cool I will make payments........
See my point....At any age credit is tough...you start out small and make the payment , even pay it of each month...then you see something you really want and max it out because they have rasied your limit....then in four months you loose the job....six months you get a job that pays less...still have the bills...but not the money.
For get the credit untill you need a car or house...take a few small loans out pay them off early and budget your cash...the small stuff...save for and pay cash
2006-11-13 23:31:07 · answer #4 · answered by Psycmixer 6 · 0⤊ 0⤋
This may not be quick enough, but if you ever buy slightly expensive household items, you can opt to get them financed and then pay them off right away without having to pay interest. You can do this at a place such as Art Van Furniture or something like that.
2006-11-13 23:19:27 · answer #5 · answered by whiteandnerdy 1 · 0⤊ 0⤋
Go to www.myfico.com. They have all the info needed to get you started.
2006-11-14 05:48:03 · answer #6 · answered by 1 Wild and Crazy Guy 3 · 0⤊ 0⤋