Establishing Credit

[gayteentn]

Ok I'm 19 ALmost 20, And sufficent to say I have no credit which I've been told is jus as bad as having bad credit, I need to build it up, but I don't want to get a credit card b/c i'm bad w/ spending money, Is there an alternative ways to build credit up?

 

[Johnny Yen]

All signs point to no.

 

[Centexfarmer]

Here's a good place to start:

No Credit? No Problem!

The absolute most important thing is to not over stretch, or over reach. Only take out what you can honestly afford, pay more than the balance, and pay it off quickly!

I only use a bank/debit card now. My attitude is, if I can't pay cash, then I can't afford it!

Good Luck!

 

[gayteentn]

thanks for the suggestion, Yea I use my debit card wayyy to much, I overdraw my account a little to much to. But I know in my future I'm gonna need credit of some kind to buy a house, or car and stuff like that

 

[Riverrick]

The best way is to get a credit card with a very low limit. Talk to your local bank. They may be willing to grant a low line of credit with no credit history provided you are employed.

Then be very, very careful to make your payments on time. I would suggest paying it off in full each month. That will keep you out of trouble.

 

[shahmask]

vamagnifique is right. if you don't have credit and don't want a credit card, u need a secured loan and you need to pay it back. that's the key!

for good credit, all payments need to be on time. also, never ever keep a loan unpaid. if u ever bought anything on credit, like even a computer, or are doing business with monthly contracts, like renting somewhere or a cellphone, never ever just leave a remaining balance. it needs to be paid off. so many ppl get dinged b/c they never paid off their remaining balances after switching cellphone companies or moving apartments.

 

[BlankCD]

get a credit card (or multiple), and cut them up as soon as you activate them.
revolving credit lines (ie, credit cards) are necessary for good credit.

 

[jockboy01]

interesting thought vamagnifique. But you're losing money to do it b/c the interest on the loan will be higher than that of the CD.

I'd say to get a credit card with a low limit and pay it off monthly. It's simply a matter of self-control when it comes to overspending.

 

[M4P]

You're going to have to get a credit card

Here's how I handle mine: I make just about every purchase with my Visa card because I accumulate points with Air Canada. But, every purchase gets recorded against my chequing (okay, checking) as if the money was already taken out. When the bill comes in there are no surprises and I'm prepared to pay it off in full

 

[gayteentn]

thanks for all the suggestions, I got another question how do I apply for a credit card?

 

[TaigaStar]

I found that you can get credit card applications from your bank. Another good thing to do is apply online. Try www.bankone.com, maybe? www.discover.com Are you in college? Some actually offer their own credit cards (careful of interest, though); any student loans count, too.

I know what it's like. I'm 26. My credit rating is good, but I had a bitch of a time getting a card (I was only a bit younger than you when I got mine). Also, not to nag, but ALWAYS pay on-time. I missed a student loan payment back in 2002 and it actually counts against me currently. Also, be careful about credit checks, as they actually lower your credit score (but you really don't have to worry about those until you apply for loans and mortgages.)

Good luck!

 

[gayteentn]

thanks for all the advice. Bad credit runs in my family, So I really want to be the exception to the rule

 

[BlankCD]

http://www.creditcards.comAlso, each time you apply for credit (an inquiry) it drops your score a few points too.

This is true, but temporary. It is not something anyone should worry about unless they are applying for a loan within 1-2 years.

 

[gayteentn]

I've gotten my credit checked twice in the last 2 months ;{ b/c I'm planning on switching cell phone companies and I needed to see how much of a deposit I'd have to pay. Why is it that getting it checked hurts u

 

[TaigaStar]

Why is it that getting it checked hurts u

Because it shows up on your credit report as a check. Now, anyone extending any form of credit will look at that and assume the check was a failed attempt because if there wasn't a problem, you wouldn't be coming to them next. It's basically them assuming you're guilty until proven innocent.