Im a college student looking to start building credit. SO far i havent used any loans and am wonder what root to take to start building credit. I thought maybe getting a crdit card for gas or something. Whats your opinion?
2007-05-31 01:49:17 · 7 answers · asked by packman 3 in Business & Finance ➔ Personal Finance
Get a credit card from a major bank (not a retail store) and use it, but pay it off each month.
You might limit yourself to only using it for gas so you're not tempted to let the balance raise. Word of advice--don't use it to eat out or go to bars. You will not realize how much you're charging over the course of a month and you will get an insanely high bill come statement time.
Make sure the card has no annual fee. Citibank offers really good cards, and they have a specific one for college students (it's really the same as any other card, they are just marketing it to college students). My little sis just got one--she had no credit history and is in college. No fees, good company reputation. Check it out at www.citicards.com.
2007-05-31 04:26:45 · answer #1 · answered by lizzgeorge 4 · 0⤊ 0⤋
Your best option, in my opinion, for building GOOD credit, would be to get a credit card from a major bank or Credit Union, use it only very occasionally (like no more than a couple of times per month and only for minor things), ALWAYS pay off the full balance for every bill, and ALWAYS pay on time. NEVER max out your credit limit, and never use the card to buy something you couldn't afford if you paid cash instead except in the case of emergencies (like, for example, if you NEED to get your car repaired and can't wait for your parents to send you the money for it). And make sure that you get a card with no annual fees and other miscellaneous fees that would make it so you would always have to pay something on the card even if you never used it.
It will take time to build good credit, and it doesn't take much at all to get BAD credit, so you need to be very careful and very responsible about it. The last thing in the world you need, other than a heart attack or other major health problem, is debt up to your ears, no degree, and no decent-paying job (trust me on this, I speak from experience).
Student loans can also help build good credit, but you should never take out a loan for anything unless you truly need to. Also, having more than one credit card can help, but if you have too many it will hurt, so no more than two would be my advice.
2007-05-31 02:09:23 · answer #2 · answered by Kyouchou 2 · 0⤊ 0⤋
Credit cards are great for building credit, but don't use it Maybe 1 time a year just to keep in active), and only get 1. Next you can goto your personal bank and borrow against your own money. Say if you have $500 borrow that and they will give you the $500 right back but you make payments right back to yourself. The rate will be realy cheap and cost you almost nothing.
2007-05-31 02:15:59 · answer #3 · answered by misty m 4 · 0⤊ 0⤋
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2007-05-31 19:11:05 · answer #4 · answered by brady ewart 3 · 0⤊ 0⤋
thats how i started building mine. i got a credit card with a low limit ($500) from my bank. i didnt use it often but always paid it on time when i did. my dad also co-signed for a car with me and making regular payments always on time helped me build credit. of course, i realize not everyone's parents would be willing to do that. so i think the best option is to try to get a credit card or small loan from your bank. it'll be easier to get approved if you have history with them and in good standing (never being over-drawn, etc).
2007-05-31 01:55:39 · answer #5 · answered by applexdapple 2 · 0⤊ 0⤋
Dont get a credit card through a store... it's actually a pretty big mistake. I am 18, and I have a credit card through Capital One, they approve people pretty easily and have good offers as long as you keep your credit on good terms... try to get a credit card through them... but don't buy things with your card that you cant afford!!
2007-05-31 01:56:24 · answer #6 · answered by Anonymous · 0⤊ 1⤋
gas cards good, you have to buy gas anyway. get one w/ min. fees, an rewards, pay it off each month......
2007-05-31 02:06:31 · answer #7 · answered by DennistheMenace 7 · 0⤊ 0⤋