[Perpetrator]

You can still pay off your credit cards in full each month, since it's still considered a "payment". Just keep charging small amounts on it, so each month you have a balance to pay off. The retail cards suggested above are good ideas, since they're quick and easy to get.

Just make sure not to go out and pimp yourself to everyone and anyone. You want to keep the number of inquiries on your credit file down. Also, make sure that you get credit from well known institutions. There are many small finance companies that don't report to the bureaus, hence the account will never be on your credit report.

In regards to the example where the 16yr old paid off an installment loan in 6 months, I doubt the reason it wasn't reported was due to paying off too fast. In some cases, the bureaus have a build in their systems to reject accounts for consumers that are minors. The finance company may have reported it, but the bureaus rejected the account. Or, like mentioned above, the finance company may not be a reporting member to the bureaus.

Sorry for the long response. Just take your time with it, and be patient. For some lenders, no credit is still better than bad credit.

GL

[AWD Addict]

Originally Posted by RRGOO7

Hey Guys,

Im about to turn 18 and want to start building good credit early so its easier to buy a house, car, etc. I hear getting a cellphone is a good place to start. What about credit cards? I don't have a job but will be in college so essentially my parents will give me a set amount every month and what i spend will be on the credit card. I hear I have to have a job to get a credit card to prove I can pay the bill...Is there any truth to that?

Any other ideas on things i can do?

I got my first credit card with a part time job only, making maybe $10k or $12k / year. I got a rough interest rate, but i just used it for gas every time i filled up, then paid it off every month.

Citibank usually is more friendly to new credit holders, as is Discover.

Personally, I don't think you need to carry a balance to prove you can make monthly payments. If you charge something every month, and pay it all off every month, it has the same effect. Just look at an Experian or TransUnion credit report - they look at length of credit account (not balance), account status (good if you've never missed a payment), and amount of debt in total (higher hurts your score, there is no minimum that "helps you).

As a responsible creditee, your biggest hurdle in establishign a good credit score is TIME. Even at 25 years old (my first card was at 18), most of my point deducted from perfect were because of how long I'd been establishing credit. 7 years still isn't a very long time in their eyes. By the time i got my mortgage on my home, It was better, but still the largest penalty on the report. I've never missed a payment, been late, or any other black mark. Takes a long time to convince these guys you're "perfect."

[cheluto2]

IMHO getting a student credit card or any other credit card (not too many, though) early on, using it regularly and making your payments on time is a great thing for your credit history. Pay it off every time you can so you don't waste too much money in interest.

I got my first Citibank Visa card with a $250 credit limit while in college, and it helped tremendously! To the point that I still have it, almost 18 years later, and the credit limit has steadily increased and is now about 240 times higher

[RRGOO7]

thanks everyone appreciate the help!

[Master Deep]

Hmm I was brought up to only spend what you have and pay off the card in full at the end of the month. Parents nor I have ever carried a balance in our life since the CC is on autopay from our checking accounts. I've had a card under their account since I was 17 and got my own student card when I was 18 linked to my checking account since I started working. I'm 20 now.

So I'm pretty sure this has to help. It can't be that the only way to build credit is buy making payments every month and getting charged interest on ur card.

CC company also started me at $500 limit. And they kept raising it every month till I hit the $2000 max limit for student cards. Took me only 6 months to get my limit maxed out. I just used my card for everything. Some months it was $200 others it was $1200. But i always had money in my checking account so it just autopayed in full.

Now this has to help me build credit right?

[BMW F22]

^ definnitely. As long as you dont carry a lot of debts or balances that is 50%+ of your credit line and pay your bill every month (regardless if it's minimum or the whole amount), your credit score will increase.

[Jay_328]

Originally Posted by Master Deep

Some months it was $200 others it was $1200. But i always had money in my checking account so it just autopayed in full.

Now this has to help me build credit right?

That is an excellent way to build/ establish your credit. RRG007 if you opt not to do the autopay just make sure you pay your bill on time. Another way to build a high fico score would be to charge everything you'd usually pay cash for and set the cash aside (very important that you have the discipline to do this) then at the end of each month pay the balance off. It shows you can handle a higher charge limit and your card will be adjusted accordingly. Good Luck

[sinnet112]

I'm not really sure what bank you have, but Bank of America has a dedicated Student Platinum Plus Card that's designed to build credit, but you get no benefits.

The current best cards on the market right now are the Chase Freedom card, which gives you 3% cash back on the three main categories you spend on every month (fast food, movies, bills, etc.). If you get $50 worth of rewards, they'll send you a $50 check. If you get $200 of rewards, they'll send you a $250 check.

The Bank Americard is also good in that you get 1.25 reward points for every 1 dollar spent, which really adds up.

I first started out building credit by doing what TurboFan recommended and getting a Zales credit card. Paid it off in full and on time and now I don't really have too much problem getting any credit cards. I wouldn't carry a balance over any month, but that's just me.

[mpimping]

Originally Posted by BMWE90

You should have waited until you turn 18 to buy the 335. This way your parents can co-sign for you and you guys can make monthly payments for it. This will raise your score like you wouldnt believe.

[johnnymu]

There's a few things you want to watch out when you're trying to build good credit.

1. check if your credit score is accurate. I had this problem with one of the three credit union, they got me and my brother confused.

2. Paying on time. Can't be late with any payment, must pay at least minimum no matter what.

3. Don't apply to too many credit cards. Rejections can actually hurt your scores.

4. Mixture of different account will help. Meaning mixture off credit card, loans, etc...

There are myths about how everytime you check your score it can actually decrease score, this can only apply if they are different applicants doesnt apply if it's the same.

If you are just starting out and have no credit, you should of told your parents to finance the car and add your name to it, that helps alot.

You can also start out by starting a saving's account by putting a small amount for example $300 and use that as a collatoral for a $300 credit card line, not a debit card. Do what turbofan is recommending with the 30% spending and just pay the minimum and build the credit. It's actually pretty easy, Good luck!!

[karliejai]

its always to good to apply for ur school student CC as they give lower % and easier to approve... for example my penn state CC =)

[Master Deep]

3 days after I applied for my college CC, it showed up in the mail. My dad was like woah...that was fast.

But maybe that's because I had a card off my parents account for a year prior to that? Or do most kids get approved fast for college cards?