2007-03-13 11:51:27 · 6 answers · asked by lollllllllllllllllllllllll 1 in Business & Finance ➔ Credit
Most people have *no* credit when they're 18. One way to get good credit quickly is to be listed as an authorized user on a credit card with someone who pays on time... from there, apply for your own credit card. They can remove you as an authorized user and it's erased from your credit history.
2007-03-13 12:27:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You basically have no credit, which means your score will be fairly low until you establish credit.
You can start establishing credit by getting a secured credit card and ALWAYS paying your bill before the due date. Timeliness of bill payments make up 35% of your score so always pay on time. If you pay off the entire bill when it comes, you will also be avoiding paying interest.
30% of your score is determined by the amount of debt you have or your debt ratio. If you have a credit card with a $1000 limit and you have an outstanding balance of $900, you have used 90% of you limit and that will hurt your score. You want to try to keep balances under 30% of your limit. I personally pay all of mine off every month and have a zero balance that way.
15% of your score is based on the length of time your credit has been active. Since you just turned 18, you're not going to get any points at all there.
10% is based on the types of credit you have, credit cards, loans, etc. A large number of open loans can sink your score.
10% is based on acquisition of new credit. If you apply for 4 or 5 credit cards, it will sink your score for a while because it looks like you're desperate. Open new accounts judiciously.
2007-03-13 12:33:24 · answer #2 · answered by Faye H 6 · 0⤊ 0⤋
Why bother waiting..
You have perfect credit the day you are born. Dont wait for it to get messed up - do it early! Apply for credit cards today, and say you are a student! Then take ONE of them and buy like $10 a month and pay it off every single month!
If you do that from say age 10 onward, by the time you reach 18 you will have AAA+++ credit and can buy a multi-million dollar mansion with a single credit card purchase and they wont even blink an eye!
2007-03-13 12:00:37 · answer #3 · answered by MrKnowItAll 6 · 1⤊ 0⤋
It's highly possible to have good credit when you turn 18. I have clients who open up credit cards in with their children's names on them, open personal loans, or even put them on auto loans or mortgages as soon as they can in order to establish credit.
2007-03-13 12:05:00 · answer #4 · answered by Steve 3 · 0⤊ 0⤋
You normally have insufficient credit (no credit)and then you would need a guarantor (co applicant) to qualify for any loan.
2007-03-13 11:55:03 · answer #5 · answered by Mary G 6 · 1⤊ 0⤋
You have no credit history which makes you risky.
2007-03-13 12:14:53 · answer #6 · answered by dkwkbmn 4 · 0⤊ 0⤋