How should I begin building Credit?

[mikeyAlphonse]

I'm right out of HS with no credit and was thinking about getting a Macbook Pro and have a credit card only for it's monthly payments. Or getting a gas credit card and use it only for gas purchases. Are these good ideas? and what do you guys do to build good credit?

[RelentlessAF]

I recommend trying to get a low interest Credit Card if you can but those are both good ideas to start. Be extremely careful, make sure to make payments early and pay more than the minimum. If you miss a payment it will make a huge negative impact on your score.

[mikeyAlphonse]

Got it, thanks!

[DeViLzzz]

Low interest credit if you can.  Still even with a higher interest credit card it is still possible to use it properly.  Don't do what I did and max it out just because you want to throw your life away and then end up paying only interest / min. payment on it.

[d3sl91]

Low interest credit if you can.  Still even with a higher interest credit card it is still possible to use it properly.  Don't do what I did and max it out just because you want to throw your life away and then end up paying only interest / min. payment on it.

Yeah, low interest card.

 

Only use it as if it was a debit card, and pay it off immediately. Dont even pay the minimum...you will get yourself in trouble that way if you're just starting out.

 

I used a card for Gas and large purchases only, and then payed off immediately when I got home. 

50 every few days adds up. and throw in the occasional several-hundred dollar computer part, camera gear, car part, whatever, and you will be building credit

[IdeaStormer]

Yeah, low interest card.

 

Only use it as if it was a debit card, and pay it off immediately. Dont even pay the minimum...you will get yourself in trouble that way if you're just starting out.

 

I used a card for Gas and large purchases only. 

50 every few days adds up.

 

(great advice up there)

 

Never ever let the balance go over one pay period, ever! If you do you might as well give your money straight to the credit card company and call it a day.

 

Also, get a card that way low in its Max that you can use, no need for a high max so you can fool yourself into thinking you are better off.

 

Think of a credit card company(ies) as the local loan shark, except they won't break your leg if you don't pay, they instead break any realistic chance of getting a decent credit score or low interest loan later in life, so you end up paying even though you think you're done with them.

[mikeyAlphonse]

Thanks for the advice!

[Pomfinator]

Do your parents have good credit? They attached me to some of their cards as an authorized user, as well as opening a joint account with me.

 

Disregard me if you want to stay independent I guess.

[ZiggyManSaad]

Low interest is a good start. Once you get one, use it only for gas/groceries and pay it off immediately. I did that for years and got my score up by the time I was 21. Then I had a kid and stopped using a credit card.

[Snickerzz]

Sorry to hijack the thread a bit but a lot of you are saying pay immediately... you can do that? I thought you just got a monthly bill of the total you owed? 

[TetraSky]

Sorry to hijack the thread a bit but a lot of you are saying pay immediately... you can do that? I thought you just got a monthly bill of the total you owed? 

You don't need to wait for the monthly bill to pay your balance. If you don't know your current balance, you can generally also check it online.

[sgloux3470]

-Lowest interest you can get

-Maintain a balance of 20-30% of your credit limit for optimal credit growth. (You're young and don't have a great paying job, so pay it off every month instead.)

- Put any medium to large size transactions on it.  Tuition for example if you pay for your own school.  

-Wait a few years.

 

For reference I'm 23 and I have a $12,000 limit now after using a credit card for four years.  

[Avolate]

The best way to build credit is not to use the Credit Card as a Loan.

 

  Just pay off in full anything you put onto the card.   If you use it like a loan and put things on the card you cant pay for then you will have two problems, you will have to pay for the stuff you cant pay for and you will have to pay interest on the stuff you cant pay for.

 

 

  You wont get any more credit in your name by buying stuff you cant pay for.  You will get credit for buying stuff you can pay for tho.

[Tocsin_786]

I'm right out of HS with no credit and was thinking about getting a Macbook Pro and have a credit card only for it's monthly payments. Or getting a gas credit card and use it only for gas purchases. Are these good ideas? and what do you guys do to build good credit?

dont get those stupid store credit cards AT ALLLLLLLLLL!!!!!!! they are literally the worst economic decision you can make. i recommend chase or TD bank cards because i find those have some of the lowest interest rates. 

[Yoinkerman]

-Lowest interest you can get

-Maintain a balance of 20-30% of your credit limit for optimal credit growth. (You're young and don't have a great paying job, so pay it off every month instead.)

- Put any medium to large size transactions on it. Tuition for example if you pay for your own school.

-Wait a few years.

For reference I'm 23 and I have a $12,000 limit now after using a credit card for four years.

Pretty much this. Carrying a balance isn't a bad thing. They want to know you're capable of making regular payments. It doesn't mean buying stuff you don't have the money for, still have the money in your bank account, but pay off some things over the course of two or three months.

Edit: consider the interest you're paying as part of the cost of getting good credit. Because that's what it takes.

[mikeyAlphonse]

I'm only 18 with a good job and have no credit. I've applied to numerous credit cards for people with "fair/bad" credit but can't manage to get accepted. Not even a gas card! What can I do to get a credit card? Please help!

btw: do credit checks & credit card applications hurt your credit? ty.

[Bloodyvalley]

I'm only 18 with a good job and have no credit. I've applied to numerous credit cards for people with "fair/bad" credit but can't manage to get accepted. Not even a gas card! What can I do to get a credit card? Please help!

btw: do credit checks & credit card applications hurt your credit? ty.

dude just ask your bank for a credit card or something

[marioo1182]

Thought you had to be 19 for a credit card.

[Laederem]

I'm only 18 with a good job and have no credit. I've applied to numerous credit cards for people with "fair/bad" credit but can't manage to get accepted. Not even a gas card! What can I do to get a credit card? Please help!

btw: do credit checks & credit card applications hurt your credit? ty.

You need to either get a cosigner, like your parents, or get a secured credit card, where you need to have at least 300~500$ provisioned off in a savings account at the bank that issues it. When you open the card, the amount in there will be your spending limit and it will be inaccessible.

Keep in mind you should use the card, but use no more than 30% regularly, the lower the better. 80% is the absolute maximum spending limit of the stated limit.

 

And constantly filing credit applications WILL damage your score.

 

dude just ask your bank for a credit card or something

doesn't work like that

[RichardsD]

From my understanding you simply need a credit card, buy a pack of gum a month and always pay the balance on time.  That is one way to raise said score.

[terrytek]

Wait, you had to be 18 to get a card? In California, you can get a card as long as you have a government issued ID.

[deVIZtation]

That's weird. When I turned 18, I got a bunch of letters from banks asking to apply for their card. I guess it's different now. 

[Cheese4395]

NO! NO! NO! Don't try to build credit! Always always try and pay cash. You don't need credit. Just save your money and get enough to buy whatever you want just dont try and build credit for the sake of building it as it has no real use.

[moppop]

NO! NO! NO! Don't try to build credit! Always always try and pay cash. You don't need credit. Just save your money and get enough to buy whatever you want just dont try and build credit for the sake of building it as it has no real use.

 

Sadly, we generally need some-sort of credit especially for something like a house purchase.

 

That said, the fact that the OP is only 18 and doesn't really know much about how credit works is not a good sign to get into credit. I generally would wait to try to start establishing credit until a person is well into their 20s where the time comes to get things like a mortgage. Credit is for people that are already established as being able to manage money. I've never known a teenager to manage money well.

[Laederem]

NO! NO! NO! Don't try to build credit! Always always try and pay cash. You don't need credit. Just save your money and get enough to buy whatever you want just dont try and build credit for the sake of building it as it has no real use.

that's an awful suggestion