1st time credit card confusion??

Question

Once i start working and have a steady income i want to get my first credit card. I am 15 and a highschool sophomore. I will have a steady job this summer and have a bad habit of not keeping track of cash because i am disorganized. I didn't know if that was possible if my parents put it under their name. I want to start building a good credit score and I want to have a card with rewards and points. what kind of card do i need to get?? Am i even eligible for a card in any way shape or form? If not and I sound like a big idiot please do not make fun of me or anything. Thank you.

Answer 1

I am so glad you are thinking ahead! You CAN start to build your credit file now. This may help you in the future to obtain car loans, credit cards, apartments, and possibly even a job. You will not be able to get your own credit card account until you are 18. Now your parents can put you on one of their credit cards. They need to call the credit card company. Have them explain they want you on the account and want it to report to your credit bureau. Each company has its own policy for doing this. Any credit card will do. As far as points....it depends on the credit card your parents currently have or get for you. With most credit cards you do have to spend thousands to earn enough points to get any rewards.

Now the credit card will do you no good if it is maxed out or has late payments. You and your parents will need to keep track of your purchases to make sure you are able to stay under your limit(I wouldn't use more then 50% of the limit) and at least make the minimum payment.

I would have your parents put you on one of existing credit card accounts. That is, providing it is/has been kept in good standing. Let them use the account, make payments, and keep track of the account. This will still build YOUR credit file. Then go ahead and get yourself a checking account with a debit card. Wells Fargo and many other banks have programs where you can get points just for using your debit card. Plus it will be easier to keep track of your finances and your parents won't need to know how you spend your money.

You need to do what is best for you. Good luck with building that credit score!

Answer 2

Basically, the modern credit card has replaced the personal loan of 50 years ago. It is used to smooth out the bumps when you get unexpected expenses. However, you're right in questioning the intelligence of spending money you don't have. A lot of people say they have a card for emergencies. However, I can't see how digging yourself into debt in an emergency is a good thing. I'd rather just have some savings. A credit card is good for building a credit history, but you don't need a credit history to get a homeloan. They just base the homeloan application on your earnings and savings ability. However, if you do want to get a card, here's what you should look for. Get a low limit card. Check ALL the fine print, so you know what fees they're going to slug you. THey like to charge for everything, so be very careful. When you find a card that has a low limit, low or minimal fees, and a low interest rate, use it to only buy one thing a week that you use regularly (like groceries or fuel for the car). Then, pay it off the same week. Pay an extra $1 on the card, so you're always in the black. That will give you a good credit rating. Don't make heaps of applications. That will ruin your credit rating, as they don't take into account whether the card was issued, only that a credit card application was made. That's a great way to ruin your credit history, so DON'T DO IT. Apply only for a card after you've done your research. If a teller at the bank pressures you, say that you need to take it home and run it by your 'trusted advisor' because you never make any financial decisions without their advice. Then, take it home and read it. Have a friend read it. If the teller pressures you, WALK AWAY. Your time is valuable. You don't need it wasted by a salesman's pressure tactics. Best wishes

Answer 3

NO, YOU ARE NOT AN IDIOT: Glad you are asking, you can not build a credit score until you can legally sign a contract 18yr.

The best thing for you to do is save your money, as soon as you can get enough to invest in any activity legally, do so. If you save money from baby sitting, you can invest is helping others get jobs baby sitting. If you babe sit one evening you make what ?, if you help a friend baby sit, she pays you $1 or $2. If you help 10 friends baby sit, you get a lot more to put in the savings account.

Once you are 17.5 yrs, look for an investment. Mine was a hot dog cart. I made $120.00 a day in 1968, it cost me $500.00, and I could only work on weekends. I made enough to make a good down payment on a house and pay the closing costs. (I still had to have my family rent it out) Uncle Sam called - the good old days.

Many of my friends lost the opportunity to do a lot of things, because they went after the newest greatest thing come down the pike instead of saving their money. Credit card REWARDS are a SCAM, low interest rate and no annual fee is all you need. Anything else and you will not like the results.

The world is full of people that tell you "THIS IS THE BEST THERE IS -YOU DESERVER THIS - IF YOU ARE THE BEST, THEN DO THIS". These people are broke, poor, and are trying to pull themselves out of their bad place over your body. Stay away from them, that is the only way to beat them at their game.

Answer 4

You're not eligible for a credit card until you turn eighteen. A credit card is a legal contract to pay for goods and services. You must be 18 or older to enter into a legal contract. If your parents choose to give you a card in their name, this will do nothing for your credit rating, only theirs. Some banks/credit card companies are introducing debit cards for minors, in which you put money in an account and then draw from that account by using the debit card. This may be your solution.

Answer 5

Anyone under the age of 18 is not legally able to enter into a contract, at least in the US, so you would not be able to get a credit card only in your name. Your parents would have to open a new account or add you as an authorized user to an existing card. They remain responsible for the payments, so expect them to know what you are buying.

Answer 6

Once you've established a credit record and creditors can see you have no problems paying off your debt you may start receiving offers from major credit card companies. You could start getting all sorts of mail from Discover, Visa, MasterCard and even American Express.

Be careful about applying for too many lines of credit. Most lenders will check your credit history when you apply for credit and each inquiry is noted on your credit report for at least six months. Too many inquiries are a red flag to creditors that you may be financially unstable. Your best bet would be to apply for no more than one line of credit every six months.

read more from: http://www.card-gallery.com/article/43,Many_Credit_Repair_Techniques_Can_be_Used_to_Build_Credit

Answer 7

The other two responders are correct. Best bet is to have your parents help you with a bank account that will give you a debit. The bank they use will be the way to go. Good luck, and be wise.....a bad credit report will haunt you for many years to come.

Answer 8

well its cool u want to establish yourself early! but a credit card mean u have to be 18 to own one! but hey if anything start saving some cash to be prepared to pay them when the time comes. also if ur mom can put one under your name try it out...but i doubt it cause ur 15. u can try at 17.