Credit Card Help?

Question

Hi, Im 19 years old and its very important that I start establishing a credit history. My parents are no help since my "step dad" isnt willing to help because Im not his real kid and my mom wants me to be independent. So far I have my own car and pay for all my bills (cell phone, internet, etc.) But its really important that I start to build up my own credit history partly because I want to move out soon.

Im not being approved for a credit card since most of there reasons are LIMITED CREDIT HISTORY, please help.

any suggestions would be great.

Answer 1

You are doing fine. And you don't need credit cards. All the good credit you are building is so easy to destroy by that virus of a credit card. If you are making car payments regularly, your credit will be fine. Don't pay your bills late either!

Good credit is the single most important thing a young person can have. Trust me!!! It took me years to undo the damage I did when I was your age.

Answer 2

Unfortunately, history = time for the credit folks. You'll just have to wait for them to figure out that you are a good risk, and that takes a while for you to show up on their computers. A general credit card, like Visa or MC, is good everywhere, so they aren't so willing to give one out without some hope of repayment.

You pay "your bills", but are you really paying your part of your parents accounts and not one in your own name? If so, maybe you can talk them into co-signing one of the accounts for you to have your account in your name (maybe internet, since it's hard to run up a bill like you can with a cell phone?). After you prove that you're responsible, you can probably talk them into more accounts, if they companies won't give your own yet.

You might try buying something small at a retailer that has their own credit card that is actually through a big bank (like Chase or Citi). It would really help if you already shop there regularly, so they've seen you a lot and realize that you've been a good customer with them before. Get something in the $300 range, and maybe even offer some cash money down -- $100 or $50. Make the payments on time (or early) and pay it off quickly. Do it again, and you'll make the credit reporting lists.

You can also call anyone where you have an account in your name and ask them to make sure they send your name into the credit reporting bureaus. They do it because it's part of business, but they really don't care if they miss a few names once in a while -- but you do. Let them know you'd like to have your status reported -- if it's good, it also makes them look good to other financial types.

Good luck!

Answer 3

First, you do need a credit card. Establishing a good credit history is as important for your financial future as a college degree. You cannot establish credit history with cell phone or internet bills. It only maintains your current credit.

The people that stated you do not need a credit card or a credit card will only bring problems had or had not admitted they did not manage their credit cards or debt responsibly.

Your credit history can affect loans (credit, home, car) as well as rentals (apartments, homes, cars, hotels,) to employment (they do credit cards for financial related jobs). Below is the information I pass along for those who are looking to establishing credit.

BUILDING CREDIT FROM NO CREDIT
1. Start with a checking account
Any time you apply for a credit card, they ask if you have a checking and savings account. A checking account is not necessary in some cases, but it does help. Maintain a good standing with the account, i.e. do not bounce checks or anything else negative because the bank will report this information to the credit bureaus. While a checking account does not really help raise a credit score (because good standing is not reported), it does establishes a credit history.

2. Cell Phone
Cell phone retailers pull your credit when purchasing a cell phone, if you have no credit you will not receive a cell phone. However with a little credit (which you establish with the checking account), you will qualify for a cell phone plan. Just like the checking account, the cell phone account will not dramatically raise your credit score, but it helps establishes credit history. Like wise, maintaining the account in good standing is not reported, but negative information does (i.e. not paying the bill).

3. Proprietary Credit Cards
Apply for an easy credit card through proprietary credit cards such as gas cards, department store cards, and other cards (Gateway or Dell cards). Some of the easer department cards to get are Target, Mervyn’s, and JC Penny’s. Sometimes those with little to no credit can qualify for a Sears, Best Buy, or Macy’s card. Maintain a good standing by not going over your credit limit and making the payments on time. Carry a balance of no more than 25% of your credit limit. You need to establish that you are making payment and not going over your credit limit. You will need to carry a balance to prove this. Proprietary cards are higher in interest (20-30%), but you need to start somewhere. View these cards as a transitional period. In other words, once your get a better rate or meaningful card (MasterCard, Visa, or AMEX) cancel the proprietary card.

4. Secure Credit Cards
Apply for a secure MasterCard or Visa. In reality, secure credit cards are really debt cards. However, secure cards are reported as credit cards to the credit bureaus.

5. Credit Cards
Apply for a MasterCard or Visa credit card. Some of the easier cards to get are student based, Capital One, credit cards from your bank, Chase, and HSBC. Keep the account in good standing. Carry a balance of no more than 25% of your credit limit, do not go over your credit limit, and do not make late payments. You may only qualify for a higher APR. However, in 4-6 months call the customer service and ask for a lower APR. If you ask, you may receive. Do not get offended if they cannot give you a lower rate. You are a consumer and you can take your business to a better card. Do note that asking for a lower rate requires reviewing your account, meaning they may pull your credit. This will count as an inquiry on your credit report. Not necessarily a bad thing, but you do not want too many (removal takes 2-years).

Conclusion
It is hard to predict what exactly will establish your credit faster or raise your credit score better. It is best to be patient and persistant. If you find a credit card that will benefit you better, (i.e. lower rate or an actual MasterCard or Visa) go for it. Keep in mind, you want to keep a credit card for 2-4 years in good standing to establish a good amount of credit history. You do not have to follow all of these steps. However, at the very least you will need a checking account. Every credit application asks if you have a checking and savings account. After establishing a checking account, you may want to apply for an actual credit card (i.e. Capital One) instead of following the cell phone, proprietary credit, and secure credit steps.

Answer 4

Just stay on top of your current bills. Do not get a credit card.. they are truly not worth the trouble they can get you in. So many Americans start out using them to build credit and end up in a lot of trouble.

If you can live within your means, save your money, and pay cash for what you need, you'll be much better off.

Answer 5

apply for a secured card: go to BofA or Wells or any other institutional bank to deposit $500 or so in a secured card account. theyll issue you a card with a $500 limit which you can use to make purchases. after 6-12 months or so of clean payments, youll be refunded your $500 deposit and issued an actual credit card.

to maintain good credit, be sure to make no late payments, and keep all balances at 50% or less of the limit.

good luck!

Answer 6

You will find the most competitive rates of credit card providers online. Search and look and see which one offers the best card.

Answer 7

stay the coarse paying car and cell, don't get credit cards, us your debit. trust me. your credit will get better and be better with out cards.