I recently turned 18 and im in a great living situation. i live with my dad, make about 1000 a month and im a musician. I wanted to buy a new bass and amp, but more importantly need to start my credit. I already have the money to buy the bass today, but i wanna see if i can start my credit with this purchase.The stores i went to say i need at least a 700 score to apply for their credit.
Is there any credit i can apply for, without having to pay financing and apr and so on without having credit to begin with. My plan is to buy the bass with credit, pay it off right away, and probably cancel the card right after.
2007-01-25 10:09:06 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
From what I understand, for the long term if you consistently make your payments on time, Chase is the credit card company that improves your credit rating the best. This information came from my mortgage broker during our first consultation when applying for a mortgage and discussing credit reports.
For someone just starting out, your goal will be to find any reputable credit card company willing to offer you credit and be diligent about paying off your entire balance every month so you won't have to worry about the APR. Quickly, a few months to a year, they will raise your credit and you will be able to access other cards that have the low APR you truly want. Do not choose any credit offers that have yearly membership fees or extra out of pocket fees, there are plenty that do not.
Try not to cancel credit cards. It's better to just not use the card ever again. When your credit score is calculated, it uses debt to credit ratio, a paid off, open card improves that ratio.
2007-01-25 12:14:45 · answer #1 · answered by jelloisyummy 2 · 0⤊ 0⤋
It would be best to start your credit with a regular credit card (Visa, Mastercard, etc) rather than a store credit card. The reason for this is b/c once you have paid the card off, in order to keep the account active you need to continue to make purchases. Go to http://www.bankrate.com/brm/rate/cc_home.asp and look at a card that has low interest and no annual fee. Also, if you have the available funds to pay for the bass, why pay extra on interest? I suggest you open up a card, make 1 purchase every month (groceries, gas, etc) and pay off the balance in full on time, every month. I urge you to never spend more than what you can afford. This will help you slowly build your credit and increase your score. By the time you are ready to buy a home, your credit will be superior and you will get the best interest rates.
2007-01-26 15:44:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You establish credit by keeping the card and continue to use it and make payments on it as required. If you get a credit card, use it for let say 30-60 days, and chuck it, you are never going to establish good credit, because it takes time for the credit bureau to see a pattern of faithful and timely payments.
If no one is going to give you a credit card right away, then you can go to a local bank and ask about a secured credit card. This is one where you put up , lets say $500, and this is what you credit limit is. The bank holds your $500 for a while, like 6 month to a year, and see how you pay your bills. At the end of the probation period , you get your deposit back , and a regular credit card.
2007-01-25 18:20:58 · answer #3 · answered by WC 7 · 0⤊ 0⤋
Capital One is known as a card company that is will give cards to people to get their credit started. If you have no history at all, your fist limit may be pretty small, but will get worked up as you build your credit history. Don't cancel the card right away as that won't do you any good. Keep it, but don't carry over balances as the interest charges will kill you.
The only down side to capital one is that they don't report credit limits, which can hurt your FICO score slightly, but it will be a good starting point.
2007-01-25 19:09:10 · answer #4 · answered by CJ M 2 · 0⤊ 0⤋
There are several "low income" credit cards out there - many of them have fees and high interest rates... after all, first time buyers are a big liability for credit card companys. Try Orchardbank.com
2007-01-25 18:17:15 · answer #5 · answered by Braden J 2 · 0⤊ 0⤋
Get a credit card fro your bank, as you need credit to get a credit card. Go here to found people with no credit http://www.bestcreditrates.net
2007-01-25 22:57:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Chase credit Cards are good cuase they offer alot of difforent plans.
2007-01-25 18:18:40 · answer #7 · answered by Mysterious 4 · 0⤊ 0⤋
Diner's Club
2007-01-25 18:13:25 · answer #8 · answered by superfly86 2 · 0⤊ 0⤋