like i said im 17 and half years old, i will turn 18 in 6 months when i will go off to college. My question is what are the best steps for me to follow to try and create very good credit for myself, My dad and mom both have very high credit scores but thats over a period of 20 years what would be a good start for me? creating a buisness? credit cards? any ideas would be greatly appreciated, aswell as any "dont do's" ( BTW getting a cosigner on any credit cards etc will not be a problem as i have a credit card of my own now through my mothers name and ive been paying it ontime for the past year)
thanks
2006-12-27 16:45:49 · 7 answers · asked by Its Me! 2 in Business & Finance ➔ Credit
You should be aware of the many factors that make up your score.....sure you could spend your life usijng only cash, but then you'd never have a credit score......the bottom line is to start and stay on top of it.....
it does no good to ever "carry a balance" on a card to demonstrate your payment history... think about it....credit cards report once a month to the credit agencies.....what if they report before your payment (in full) hits.....on paper it would appear that you DO carry a balance every month....
FICO also looks at "types" of credit....stay away from dept store cards/gas cards/walmart cards/etc....the wrong type of credit can lower your score......
available credit vs used credit.....if you have two cards w/ a credit limit totaling $2,000....and you routinely run up $1,000K each month (even if you pay it off every month)....on paper, you're using 50% of your available credit.....NOT GOOD....its a balancing game.....
Then, there's TOO MUCH available credit.....if you have two cards w/ a limit totaling $10K, and you are a college student....FICO gets lowered because the potential for deep debt is there.....again a balancing game....
I recently got a card (I didn't even apply for) w/ a new checking acct and the limit was $12K.....are you kidding me?????? one card w/ a 12K limit dropped my score 30 points.....I never activated it, and they made it real inconvenient to lower the limit/close it....I didn't need it and certainly didn't want it...
Time....it takes time to establish a score.....don't finance anything....only charge what you can pay off in full.....
lastly, the type of credit card should have a reasonable credit limit/interest rate no higher than 16%/no annual fees.....you might try Citicard - they have a 5% cashback program and I just got a check for $535 last month......I put EVERYTHING on that card and just pay it off in full and NEVER pay a finance charge.
(from personal experience (my score is 792) stay away from Bank of America cards)
2006-12-28 02:06:21 · answer #1 · answered by Paula M 5 · 0⤊ 1⤋
Wow, I guess some people here plan on buying a $300,000 house with cash?
Lets be real, you can still have credit and be responsible with it. It doesn't mean that you use credit cards for frivolous nonsense, it means that if you should ever need to make a big purchase or need a loan in the future for something important (em, like a house), you will have a history behind you that will show that you are worthy of it. People who immediately dismiss credit are people who have bad credit (or have had bad experiences with credit). Credit is not a bad thing if you are responsible with it.
Visit lendingtree.com and click on the credit section and it gives excellent advice for people in a variety of situations. (People who are trying to establish credit for the first time, etc....)
One quick tip. Start off with one major credit card. Use it but pay it off before the end of the month. In other words, don't keep balances on your cards from month to month. Be aware that credit offers will flood your mailbox (being that you will turn 18 soon). DO NOT respond to these people. You don't need every credit card that is offered to you. Also, ask your parents about their credit habits, what worked for them, what didn't and what did they learn along the way.
Hope that helps!
2006-12-27 17:51:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
go to a local department store where you like to shop and complete an application for a credit card, you only want maybe a $500 or $1000 limit........buy a few things that you can afford to pay off in a few months, and do this, make sure you make all of your payments on time. and keep doing this, don't charge more than you can afford...this builds up your credit history. you can also get a gas credit card from your local gas station and pay for gas with it and pay off the bill when you get it. anything like this establishes your credit history. having a good credit score and credit history is very important for many things, like buying a house, getting car loans, it even affects your car insurance rates
2006-12-28 07:36:45 · answer #3 · answered by besthusbandever 4 · 0⤊ 0⤋
Get a secured credit card and keep up with your determination to pay on time. You really don't need a credit card except for maybe $1,000 limit for emergencies. The reason to build credit is for things like a car, home, etc. so stick to cash purchases and seperating wants from needs. It would be a nice compliment to your parents to ask THEM how they did it. "Mom, Dad, I am really impressed by your credit scores and I'd like to have the same thing... how'd you guys do it?"
2006-12-27 16:54:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Beautiful eyes, nice hair, respectably short. Tattoos are fine but earings can be a little much. But thats just my opinion. I'm 37 so looking at you, you are cute for a kid. Don't take that wrong, my son will always be my baby and he's almost 21. Anyways, just make sure that you show respect for the girls and not show off. Funny can be good. All into yourself, very bad. If you find a girl at college, show her the side of you that women desire to see in a man. Honesty, respect and confidence. Not Cockie. Good Luck
2016-03-28 21:53:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I'm 49 and don't use credit cards , I have seen many use them and pay and pay and pay . the way the interest is set up you actually pay 3-5 times for the purchase. If you must have one only spend what you can pay-off at the end of the month.
The only people that Jesus actually got mad at were the "money changers " or the modern name "bankers"
2006-12-27 17:00:06 · answer #6 · answered by Robert F 7 · 0⤊ 0⤋
im 28 years old i never had a credit card or any type of credit under my name
i dont believe in them if i have the money i will buy even if its a car or house or anything else i just budget budget and save as much then enjoy my own money rather than the banks
cool
happy new year
2006-12-27 16:50:29 · answer #7 · answered by musty118 2 · 2⤊ 1⤋