If I'm 18, how do I build my credit?
I have a job (since June of 2012) and have had a bank account since then. I have a little money saved up, but it's only a few hundred dollars. I don't have anything I have to pay for right now other than daily costs such as food when I'm not at home, lunch money at school, gas for the car my parents let me drive, etc. (By the way, they are only letting me use this car when I am at home, and when college starts a year from now, I will need a car.) I am very wise when it comes to managing money, and I am currently on a sort-of-steady-ish budget and do not plan on being in debt any time soon. I would never spend any money that I don't have (unless you think a car loan is included in this). I would rather not get a cheap car that I will constantly be making repairs on, and I would rather not buy a car if it's more than around 8 years old because something is bound to go wrong, even if it's something like an Accord or a Camry. I am just trying to find a way to get a
What do I do to build my credit at age 16?
In the United States, Nothing, unless you have been Judicially Emancipated by a Court Order (this is very, very rare, and not worth pursuing unless you have an exceptionally rare personal circumstance).Minors are not allowed to enter into legally binding contracts, assume debt, or otherwise participate in credit. Any contracts they enter are either subject to repudiation or have their parents as the legal contract holders and responsible payers. As such, nothing you do is considered an indication of your ability to manage debt on your own, which is what a credit score is.There isn’t any reason to worry about this. When you turn 18, there will be plenty of companies willing to advance small amounts of debt to you to establish your credit (assuming you have adequate income to justify this). Debt scores aren’t a competition, if you have learned good financial habits while a child, your credit score will end up just fine in due course.
How can I build my credit up FAST?
You misunderstand how credit scores are calculated. Here is how your score is calculated. I will comment based on your specific situation. (For example, I won't talk about bankruptcy because you haven't declared bankruptcy.) 1. payment history. Paying late will hurt you, so don't pay late on any of your loans. Other than never paying late, there is nothing you can do to improve this part. 2. debt burden. Owing less is better. You can help your score by paying down your loans. Your current debt burden is what matters, so it doesn't matter if you pay down your loans now or one month before you apply for a mortgage. 3. Length of credit history. Nothing you can do to make time go faster. 4. Types of credit used. Your car loan will help improve your score, but another credit card will not. 5. Recent searches for credit. Asking for credit increases will cause hard inquiries, which will hurt you here. Raising your credit limits will not help. Using your credit cards more will not help. Paying less than the full balance on a credit card will hurt because it raises your balance, but there is no "history" -- only the current balance matters, not what it was two months ago.
I’m 18 and trying to find ways to build my credit,What could I do?
Should I just apply for a small charge card and pay all of my payments?I was also thinking about getting a Secured credit card of 250-300$,Would this be beneficial?
How to build or repair credit score?
A credit card is a great financial tool. It can be more convenient to use and carry than cash, and it offers valuable consumer protections under federal law. At the same time, it's a big responsibility. If you don't use it carefully, you may owe more than you can repay, damage your credit rating and create credit problems for yourself that can be difficult to fix. A good credit rating is a crucial part of achieving financial independence. By improving your credit rating you can save thousands of dollars in interest charges on your auto and home loan. You can also get approved for new, low interest loans and credit cards. Therefore, to build or repair your credit, if you have extra cash, pay down as much of your debt as possible. The lower your ratio of current debt to available credit limits, the better you look to a lender, and the higher your credit score will be. The flip side of this is to call existing credit card accounts you may have and ask them to increase your limit, though you won't actually use it. You should do this as often as possible, even if you don't need the credit. This will also increase your credit score. However, please, do not not open additional credit card accounts to increase this ratio, since that may hurt your credit unless you have under 4 open credit cards. But increased credit limits on existing accounts will help since you will be lowering your overall debt ratio. In summary: You don't need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time. Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points. Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points. Have credit cards - but manage them responsibly. Having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly. Good luck!
How can I build my credit history as an international student new in the US?
You actually have more options than you think:Cards Specifically for Students and ImmigrantsThere are cards specifically for students which you may qualify for. Also, some banks, like Capital One, actually have a card for immigrants. Those may be your best bets to get started.Apply at a Bank You Have a Relationship WithAnother method that works is open a bank account (such as a checking account) and have a history of deposits into the account showing you know how to handle money. This doesn't appear on your credit report, but it does give you a relationship with that bank. Once you have established yourself as a stable customer, apply for a credit card at the same bank. Since they have a history on you, they may be more likely to give you a card when others wouldn't.Secured Personal LoanIf you still can't get approved that way, another sure fire way is to take out a secured personal loan at a bank. Basically you deposit $1,000 or more into their bank (usually as a certificate of deposit (also known as a "CD")), and then take out a $1,000 loan using the $1,000 CD as collateral. This gets reported to your credit report, and establishes your credit history. After about 6 to 12 months, you will be getting letters in the mail asking you to apply for a card.Secured Credit CardAnother method would be getting a secured credit card. Similar to the option above, except you are depositing money in exchange for getting a credit card with the same credit limit.Important Note: Credit Reports Only List Debt AccountsAlso, it should be noted that your credit report only has debt accounts on it, and does not include checking accounts, savings accounts, bill payments, or anything else not loan related. So your payments to AT&T for your phone or cable would not affect your credit score at all.In fact, until you open your first credit card or take out your first loan, there will be no credit report file on you at all, which makes it hard to even apply for prepaid cards, since you don't exist yet according to the credit bureaus.Good LuckTry one of the methods above, and you should be able to get your first listing on your credit report, which will help establish you in the system.
How am I supposed to build my credit if no one will give me a credit card?
It isn't just your lack of credit history. It's your age, lack of maturity and financial management experience, not to mention limited employment history. College students use to be targeted for credit cards. All too many got multiple cards, ran up the balances and defaulted. The new law requires anyone under 21 to provide proof of sufficient income to qualify for a credit card or have a parent co-sign -- basically protecting you from your own bad judgment. If you want a credit card, go to your bank and apply. You may have to start with a secured card (you pay a deposit which is held as collateral against the line of credit). Use the card and pay the balance in fulll every month. In about a year, you should be able to convert the secured card to a regular account.
How can I build my credit up fast (17000 in credit card debt, credit score has tanked, just got a new job)?
You have to pay that card down or try debt consolidation which they will charge/help you for paying down debt. Building your credit is no quick fix especially in your situation, you have a high balance with a credit card. Give it some time and don't abandon that credit card.