can you build credit before you are 18...if so how?

Question

i dont think i want to inherit my parents credit history...its kinda messed up lol

Answer 1

Well as its already been stated the best and maybe only way will be through your parents. I am 18 and i wanted to establish credit early also and my parents kept telling me to get a store credit card, which for me was nearly immpossible b/c now days you need a major credit card to get a store credit card. All the stores turned me down ..so i had to wiat till 18..i applied for about 4 different cards b4 i got one with chase and after that i was then able to get the store cards i wanted

.....but most people have to wait until 18 b/c alot of parents{ especially mine} are reluctant to put thier kids on their credit b/c they dont want them to screw up their credit..so good luck

Answer 2

Some banks offer co-assigned credit cards to people under age of 18. This means you have to get a parent or guardian permission to obtain these cards.

This means first 1) Find a bank that will offer this 2) Have your parent's permission. 3) Make sure to pay off your account each month.

The credit card will probably have a very low limit ($100~$500) and may affect your parent's credit as well. Talk to your parents, and ask local banks. If you are from Alberta Canada, ATB Financial offers mastercards for youth.

Other actions which can build credit is actually saving money in a bank account. Although it won't (usually) establish your credit history, when you go to apply for credit and the financier sees that you have established savings and are well cushioned, you pose as low risk and they will be more likely to give you better financing rates etc. When I got my first credit card, I was able to get one with a large credit limit and the best loyalty program because the banker said "Wow, unlike most kids, you've saved up quite a bit. Although we normally only give this card to those who make $50000+, you can get it."

Good initiative to be thinking about it. Good luck, but I wouldn't fret too too much it yet.

Answer 3

PIGGYBACKING: Despite its' virtually
unlimited potential, piggybacking is
not used by nearly as many consumers as
it should be. It's easy, effective,
and extremely fast. Unfortunately,
it's mostly used among parents and
siblings while those who can really
benefit stay in the dark.

How it works. Almost every credit
card or credit account will allow the
primary account holder to add on (at a
later date) what's known as an
"Authorized User" or "Secondary Account
Holder". In most cases, when this is
done, the entire account history
(retroactively) gets posted to the
authorized users credit report
regardless of their current age or
credit history!

For example. If it's a credit card
with a $10,000 limit which has been
paid as agreed for the last 10 years,
then that complete history will be
posted to the authorized users' credit
report. I once saw a clients' credit
report who used this technique with his
mother. He was only 24 at the time and
he had a $15,000 Gold credit card on
his report with history going back 11
years! I laughed as I thought to
myself that this kid would have had to
be approved when he was 13 years old
for this account to be his!

As you can see, this strategy is
usually only used by parents and their
children and in most cases with no
regard to the benefits the children are
reaping credit wise! In fact, in
recent years, due to its'
effectiveness, this technique has led
individuals with excellent credit
scores to "rent out" authorized user
accounts on one or even multiple credit
cards in return for a fee! I once
recall seeing an ad in USA TODAY for
just such an opportunity. Like most
good credit loopholes, I'm sure this
methods' days are numbered much like
what may be the case with...

Answer 4

Yes, and that is a great question. This is something that many adults don't even know about; it's called Credit Inheiritance. What credit inheiritance does is it allows you to have someone, already with a credit card, cosign for you on one of thier credit cards or 3. :) It does not have to be your parents.

A couple things you need to be sure of when asking to be added onto someone else's account is: "Do you currently have a less than 30% balance on your account?" and "Have you ever had any late payments on this account? Less than a 30% balance at all times adds points, between 30-50% balance is no change and 50% + takes points away ALWAYS. Late payments takes a lot of points away, especially early in building your credit.

When they co-sign for you to add you on to one of thier accounts you actually not only acquire a credit card (which if you just want the score you don't have to have them give it to you) you will actually acquire all of thier credit history!
I work as a mortgage broker and I have my clients do this with friends, family, and co-workers if I need them to increase thier FICO score quickly. It takes about 30-60 days to report so hold tight. Another thing that you would want to know about is, even when they take you off of thier account, the account shows on your report as closed in good standing. Find someone who you have a good relationship with and get to building that credit ASAP.

Answer 5

Before 18, I'm not sure, but I know after 18 you could get a low credit limit secured credit card. For example, apply for the card, pay the company $200.00,(or however much they require) then you have a secured credit limit of $200.00. Then when you use the card, always pay at least the monthly amount on time and never spend over the limit and as they see you're responsible they will raise your credit limit & return your original $200.00.

Answer 6

Get on your parents credit cards and you inherit your parents credit history. It is like magic!

Answer 7

You can build your credit before you are 18 if you have a regular income and you're willing to take on debt and pay the monthly payments on time. If you get a bill one month and pay it all of in the next month, that does not establish credit.

Answer 8

Get a credit card under your parents name. It'll have a low limit and give you a chance to earn a credit rating early on.

Answer 9

have parents issue you a card on their account. You will be linked to their credit.

Answer 10

have your parents co-sign for something in your name