I just turned 18... what is the best thing to do to establish my credit.....well to get me started?

Answer 1

well, if you're a bit of a shopoholic, get department store credit cards at stores you hate, purchase one thing, pay it off, and then cut up the card and never use it again.

Your credit rating will increase from a card used once to buy a pack of gum as a 100k platinum card that you max and pay off every month.

The longer your history gets with that card and others like it, the better off your credit score.

The cell phone is an ok idea, but you're probably on a shared plan with your parents, and saving money. Secured credit cards cost money. You pay annual fees, etc.

If you're a natural tightwad, you can just get cards anywhere and everywhere, only use them once then put them away. For most, especially (no offense) teenage girls, credit cards are bad news.

Don't buy a car just to buy a car, you're gonna pay a high high interest rate with no credit established, and that defeats the point of establishing credit in the first place. Plus they are going to charge you more for the car than its worth.

Good luck, good credit is a good thing.

Once you're ready, of if you're parents are generous enough and wiling to help out, buy a house, and get roommates. You can collect enough from your roommates to pay the rent, and you can establish credit at the same time.

You can refinance a home to a lower rate after a year or two of paying on time, so the interest rate really isn't that bad.

You can't refinance a note on a 95 dodge neon.

Answer 2

Actually, cell phone companies do not report to the credit bureaus if you pay your account positively. So getting a cell phone is not the way to get good credit. I work for a finance company and look at credit bureaus all day every day, believe me.

A great way to quickly get yourself a credit score is to save up $500 or $1000 (or more, no limit porbably!) and get what is called a 'secured loan' with your bank or local financial institution. What you're actually doing is taking a loan out in the same amount against what you have. So say I have $500 and I use it to establish a 'secure loan,'... my bank basically puts my $500 in an account along with the $500 their loaning me and they use that money to pay off their $500.

Not only do you pay about only $3 in interest, but it's guaranteed approval because you already have the $ to pay it. And, the best things for your credit bureau are 'installment debt' accounts and that is what a secured loan is, it pays its self off in monthly installments. I did this when I turned 18 with $1000 and my scored was at a 654 in about 6 months.

Places like Best Buy and Ultimate Electronics are easy to get first time financing as well. I got a $500 credit line after I was 18 for only 3 months, I bought something, paid it off way ahead of time, and now I have a $4500 credit line and a way higher credit score.

Of course, I have other accounts as well, that's why my score is high. I am just trying to tell you, it's not as hard as what people make it seem. Sorry my answer is so long lol.

Answer 3

You should open an account at a bank or credit union, then get a credit card from that instiution. They won't allow you much credit unless the amount in your account is high. Credit unions usually offer fixed rates and those are much lower than what you get in the mail. You could also limit the credit card yourself, so you know you cant spend very much with it. The bill should be paid in full every month that has a purchase. If you have a credit card, but never use it, you can still gain good credit anyway. You can also make a large purchase, and pay off the payments as fast as you can. ex.-TV, car, washer/dryer, fridge,..etc. Cell phone contracts can help with credit too.

Answer 4

Get a student credit card if you can. Once you get one credit card and pay on time, you'll be offered more in the future with better rates and terms.

If you can't get a credit card, you could get a secured credit card in which you pay upfront to fund the card using a bank account, and then use the card to make purchases.

It's always hardest to get the first line of credit, but once you do, things will coast if you pay on time and don't get into major debt. You'll find offers at your door left and right if you prove to creditors that you're a responsible borrower.

Learn more at http://www.thetruthaboutcreditcards.com

Answer 5

1. Small possibly secured credit card
Many credit card companies will offer you a low limit secured credit card that is backed by a small equal deposit even if you have horrible credit but they charge high interest rates. You'll probably be able to get a $500.00 unsecured line of credit if you look for it, try the back you have your checking/savings account at first, some of them are more lenient with current customers.

2. Get your Cell Phone and as many utilities bills in your name as possible.
Even if they are only jointly in your name they will show up on your credit if the given utilitiy company reports.

3. Get on the lease for your apartment.
Many complexes require that anyone over 18 be on a lease even if you are a dependant so this is an easy way to get your credit up even if you are still living at home.

4. If you have a solid job consider buying appreciable secured loans such as a used car or something of the like.
The key word here is appreciable, try to stay away from new cars as they depreciate as soon as you drive off the lot.

Tip: Try to keep ahold of your debt, incurring more debt than you can handle to try and build credit defeats the purpose, you can just as easily destroy your neutral credit by over-extending yourself.

Answer 6

truly, being a student is the thanks to get credit time-honored. each and each of the substantial mastercard organizations have classes set up for providing credit to school students that haven't any credit heritage. also, if it really is no longer your situation, typically someone like Sears, JC Penney, or different shops are exceedingly versatile about letting you get a keep mastercard with out having rather some previous credit time-honored. you may also attempt gas charge playing cards, yet i imagine maximum of them do not exist anymore. ultimately, a caution: be careful about organising credit at the same time with someone like a ascertain. it ought to artwork properly, even though it also ought to backfire. I had a pal who tried to attempt this, and his mom ruined his credit through misusing the account and then no longer paying on it at the same time as she promised to. Any type of joint credit is volatile, even if in case you recognize the guy is honest, because even the nicest human beings have fallen on not person-friendly cases, and there is not any telling what ought to take position. best of success to you. P.S. Having a good credit heritage isn't almost as substantial at your age as having a good funding technique. do not get stuck up interior the borrower's lifestyle. Be an investor instead!

Answer 7

Apply for a couple of credit cards, you will be denied, but shortly after you will start to receive offers from other credit cards. I would try to pick one that has a low credit limit (around $500) to keep yourself from giving in to the temptation that screws over so many Americans. DO NOT spend money on it that you do not have. What I did with mine was pay my cable and electric bills with my credit card, and then sent in a payment for my credit card before my grace period was up so I didn't have to pay interest. It worked really well for me. Important things to consider when choosing the card: Grace period (how long do you have before interest starts to build on purchases, usually 15-25 days), interest rate (My first card was 0% for the first year and 12.99% after which was really good for a first card) and fees (do you have to pay a fee each year or for not using your card each month). Good luck!!

Answer 8

If you save cash and purchase everything with cash, you never need to use credit.

I suggest reading "The Total Money Makeover" by Dave Ramsey. I wish I would have read it when I was 18.

This is a totally foreign idea to today's American society but you can do it and end up retiring a millionaire if you start saving and using cash today instead of paying payments!! His book has a great calculation if you start saving $100/month today until you are 25 and how rich you will be by the time you want to retire.

Also read: The Millionaire Next Door by Stanley; great book. If you start out doing what rich people do, you will eventually be rich. But if you start out doing what poor or middle class people do, you will remain poor or middle class.

Answer 9

i just called the bank and asked them what the best way would be. the lady suggested getting a credit card. i had to have more money in my account than the card was for. so i have a 500 limit cuz i'm only 18 too.

Answer 10

Cell phone bill is good. I would suggest one credit card with a moderate to low limit ($500 or so) and make sure to not spend more than $250 on it and pay in full each month possible.