Friday, November 19, 2010

How to establish credit as an 18 year old?

I just turned 18 and want to establish credit for myself. I do not really know anything about credit. My sister's boyfriend never got a credit card or anything, now he is 26 and has no credit.

How do I establish credit? Do I absolutely NEED to get a credit card? Which credit card is best for a student in college?

Right now I have a debit card with Chase, hooked up to my checking account. Does this give me credit?

Any helpful answers are very much appreciated.How to establish credit as an 18 year old?
Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments - freecreditreport.hotusa.orgHow to establish credit as an 18 year old?
If you are desirous of establishing a good credit record, should start off by applying for a credit card. The companies that monitor credit history compile information based on your payments and responsible consumers build up a good credit report by promptly paying off what they owe. A second consideration, especially if the consumer did not qualify for a conventional credit card, is to apply for secured credit. This method lessens the lender's risk by having access to some kind of guaranty from the borrower in case of default. An alternative way is to have a person with a proven history of good credit co-sign a loan. These co-signers are a form of guarantee diminishing the lender's risk of non-payment.

Having and using a credit card wisely can be beneficial to your credit rating. Financial experts recommend keeping your account balances less than 50% of your available credit. It shows that you have the ability to pay back your debt.

Your credit rating is established partially on your credit history. Your credit history is based on the information that your creditors have reported to credit bureaus, including credit cards, loans, and even some utility bills.
First thing you need to try is a student credit card.

IF you apply for a student card and you don't get it (because they've stricten the rules for obtaining the CC now)

You can always add your name onto your parents CC, or have them co-sign you.

Another way is for you to have incoming bills under your name and pay it off. Like your house bills (like utility such as water) or something simple, change it under your name.

I guess the easiest way would be to get a job, and deposit like 3 checks or something, then deposit the 4th one by going inside the bank, and ask them if you can get a student CC.
Once you're 18, you can get a credit card.

Do you really need one? This is all up to you. While a credit card is the best way to build credit, just make sure you pay it off on time in full, EVERY time to keep a great credit score.

When you're in college, you're going to have the best chances of getting approved. I would recommend either the Forward, or MTVu card. Google ';student credit cards'; for a great selection.

As for your debit card, those type of cards don't build a history.
A debit card does not establish credit, it is just like writing a check at the register but faster. It can only pull money out of your checking account.

A credit card is a great way to establish credit...if you can handle it. Remember that credit card debt can get out of hand fast. Since you are asking about a college student card, I recommend that you do what I did, which is get a student credit card. I have the citi mtvU card and love it. It gives 5x points at the movies, at any restaurant, and at bookstores (which means big points when buying textbooks at $100+ each) and you get points for good grades and 25 free points monthly for paying on time.

Get the card, use it but don't charge anything you can't pay for at the end of the month, and pay in full each month so that you don't accrue interest (why pay extra for things?). I did this and after 2 years I now have great credit.

Just remember that a credit card is like a knife...a useful tool unless you cut yourself with it. Don't get into debt and you'll be fine:)
there are a couple of ways you could start building credit, you could get a small personal loan which you might need a cosigner or the best way will be getting a credit cards, you could get a credit card and use it for your every day expenses but make sure you pay in full at the end of the month that way it will show pay in full everytime the credit card company reports to the credit beuros. At the begining you will only be approved for the lower end credit cards but once you build credit in about 6-9 months you should be able to apply for a better card with better benefits such as free miles or cash back. Check out and go under bad or no credit section and you will find a few choices. But if you are a student apply of a student credit card these cards have no annual fees and low rates
HELLO _ this is a good way to establish CREDIT--

I work at a bank in PENNSYLVANIA

------------have some put up a CD for you at a bank and you borrow against it- when the loan matures and you pay it off ( even early ) ---they get their CD returned -- it is called a share loan --- THE BANK doesn't lose if you dont pay on the loan -- the CD owners will pay on the loan - you establish credit than way --
The first credit card I had was from J.C Penny's. I was told they give a card to any one.That's the best way to get credit I don't recommend getting a credit card my self. If you really want to get credit try getting a car loan. That will help.

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