I was wondering whether or not it would be a good idea for me being 17 with no credit history to get a credit card and start using it for like 50-100 dollar purchases so I can start establishing a good credit report now for the future. I was planning simply using it for those ranges of purchases, not for like plasma screen TVs or anything above $100 or so that I couldn't pay off as soon as the bill arrives, plus I was going to pay it long before it's due date. Does this sound like a good or bad idea or something risky?
2006-11-14 15:35:00 · 9 answers · asked by Josh 1 in Business & Finance ➔ Credit
that's the right idea. pay off the balance when the bill comes in to avoid any interest charges.
2006-11-14 15:39:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Its a great idea if you are the type of person that can manage his/her monthly spending. If you keep it for small amounts, as you said, and pay it off regularly then this is a great idea and it will give you a great start in your future credit. The only obstacle I see for you at this point is that you are under legal age of 18. Legally you can not enter into a contract, which is a credit card agreement. But you can get your parents or other relative to include you as a second buyer on their credit card and stay there until you turn 18, then move on one on your own.
Good luck.
2006-11-15 00:30:22 · answer #2 · answered by fasb123r 4 · 0⤊ 0⤋
Your being 17 may create a problem. I dont know if its legal for a bank to sign a contract with you. Having a credit card is a contractual agreement between you and the lender and may not be legal for a 17 year old. Of course I don't know everything but I might be right here. You got the right idea about it though. Always pay it off each month so not to go into debt.
2006-11-15 00:04:32 · answer #3 · answered by friendly advice from maine 5 · 0⤊ 0⤋
DON'T DO IT. I know i don't know you but all i can tell you is my experience. The easiest and probably the best way to establish credit is with a car loan. They are typically easier to get than a personal loan. The other way to establish credit is to get a secured credit card - that is a card where the credit limit is secured by either your checking or savings account. Your bank will have to issue this.
For most ppl, unsecured credit cards are a recipe for financial disaster. We all have good intentions to control our spending habits but frequently lack the discipline. I got my first credit card at 21 and am still in debt with it - i'm 50.
2006-11-15 11:17:50 · answer #4 · answered by mikey 6 · 0⤊ 0⤋
Thats a good idea but just make sure that you dont use it too much and when the bill comes in you dont have the money. I would recommend that you spend no more then $50-75 per month and just pay it off each time. Good luck.
2006-11-14 23:39:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Good idea, just don't get into the material wealth trap. Too easy to pay with credit.
2006-11-14 23:44:07 · answer #6 · answered by mickeyg1958 4 · 0⤊ 0⤋
Credit is a leading cause of debt in this country, it is only legalized loan sharking.
C R E D I T
C - IT - RED = That's what happens, and what it says of itself.............. buyer beware, If you can't pay cash, you don't need it
I AM
2006-11-14 23:50:08 · answer #7 · answered by Anonymous · 1⤊ 0⤋
hi
2006-11-15 01:40:03 · answer #8 · answered by rai t 2 · 0⤊ 0⤋
it is agood idea as long as you stick to your plan but a warning i too had a plan and it is very easy to get carried away and very difficult to rebuild credit good luck
2006-11-14 23:44:57 · answer #9 · answered by krazy kat 2 · 0⤊ 0⤋