How do I start developing credit? I just turned 18 and have a checking and savings account?

Answer 1

IF YOU CANT GET YOUR PARENTS TO HELP YOU OR WANT TO DO IT ON YOUR OWN: Depending on where you bank (I know that Bank of America does), you may be able to apply for a "secured card" in which you pay a small deposit and the bank gives you a card with a low limit. Use the card and always pay the bill in full (early is even better than on time! learn this now to establish excellent bill paying habits :) After a few months the bank will upgrade you to a regular "unsecured card" and as you continue to use the card regularly and pay your bills on time your credit will be established. But after a year or so with the unsecured card you should get approved for higher amounts. You can even call your bank and request that they up your limits. Your interest rates may be higher, but as you improve you credit and always pay your bills on time (cant stress that enough!) your credit will become what you want it to be!

Answer 2

Very Simple. Ask you parents to add you on 2 or 3 of their credit cards as an Authorized User. Tell them that you need good accounts like any accounts that have been opened for more than 24 months, never been paid late and have high credit limit like $1000.00 and up. Be on these cards for a couple of months and then you will apply and get almost any credit card on your own. I did this when I was younger. Check this website to understand credit.

Answer 3

any bills in your own name ie cell phone that are paid on time is the first start.

Some credit card companys or store credit cards or gas credit cards will offer very low limits to young people.

Be smart about it, example gas card, use it but then send the cash to the credit card company the next day.

Paying bills as you use your card or within days of using card is a good way to start building a good credit rating.

I had a card when I was young it was only for 200, I would use it but only when I had the money and then would mail a payment to the credit card company that day. This way I never paid interest, and my credit rating was good showing I paid on time.

Answer 4

Hi. I just figured this one ouot for myself. Go to the bank you have your accounts with and ask about the Forced Loan plans. Or piggy backing. If you know someone with LIFELONG fantastic credit, then go for the Piggybacking feature. They add you to as an authorized user on thier credit card, but send the card to thier address, cut up the card, for thier own peace of mind and yours. and you get the credit rating starting from the date the account was opened. So your credit score sky rockest and looks like you've got a history longer than your legs....

here's a link..

http://www.expert-credit-advice.com/building_credit.htm

Answer 5

Hi Sumy, Apply for a credit card.When you get it,and charge things on your card,make sure you pay you credit card bill at least a week early. This is how you will get excellent credit. I know this for a fact,because i did it,and have out standing credit. A Friend.

Clowmy

Answer 6

You already are.... Pay all of your bills on time. Apply for a credit card and even if you do not need to, use it-pay it off the same month. By doing that will show creditors that you pay your bills.
Do not apply for too many (each time you do it lowers your score).

Answer 7

Apply for a credit card: visa or mastercard


There is a rising number of credit card providers, who provide introductory deals for a specified time period, in which you will get a 0% APR on either a balance transfer, or on your purchases, or at times on both.