I'm 21 and need to build credit?

Question

I'd like to build some credit. As of now I have a checking account and have had a phone contract since I was 16.

What else can I do to build credit? I know a credit card... but I'd like one that's good for a 21 year old. Maybe one you can reload?

Any advice?

Answer 1

You should probably start out with a starter card. Since you are 21, you might be able to get a nicer card than people with no credit history. If you are a student, try student credit card. See the below site for some great cards that you can apply for.

Answer 2

there are two ways you could start credit one or them is taking out a small personal loan which you might need a co-signer . Or you could apply for a credit card for bad or no credit which most likely will get you approved no matter what, but if you are a student you could get a student credit card which will offer you lower rates and no annual fees, check out www.fastcreditcardapprovals.com and go under bad or no credit or student cards. good luck

http://fastcreditcardapprovals.com/

Answer 3

Department store credit cards are very easy to get and a great way to build credit, especially if you're having trouble being approved for other credit cards.

However, be cautious of the very high interest rates, as much as 28%, which will kill you if you do not pay the balance off at the end of the month.

Never buy on credit more than you can handle financially, and remember to pay off the balance in full each month.

Answer 4

The best credit card company is American Express Credit Card. There are many ways you can do to build up your credit through loan, purchasing a car or anything that require you to make a payment each month. But credit card should be the first one you should have and the easy one you can pay off fast. The second one is purchasing a car n the third one is buying a house. But make sure you make a payment on time if not it will hurt your credit which you don't want that to happen. Hope that would help you!!

Answer 5

Orchard bank credit card

Answer 6

your credit rating is determined, in part by the amount of money you CAN borrow (points are taken away for the amount you DO borrow). This is one of those things that banks do not talk about;

if you have the discipline to do it get as many cards and the highest available limits you can talk them into (just don't use them). Things will change over time, some will drop you some will try to charge you (never, ever accept a credit card that has charges).

Own something that has equity. Home is number 1, but even a small stock and bond account will add to your score.

(be careful of charges there too).

as my father once said: "I don't want to die with 5 million dollars . . . . . I want to die OWING five milion dollars".

this is, unfortunately, how the game is played in this era.

Answer 7

Buy a car with substantial down, this will give creditors something to track, and it will be a secured loan.Make ALL the payments on or before the due date, never miss.This will start you on the way to a credit history. It doesn't have to be fancy, maybe a geo metro, good gas milage.Credit cards can be a trap, and are always expensive in repayment, but a reload at least will keep you above water.

Answer 8

any basic credit card with a low limit so you can learn how to manage credit.  don't run up a bunch of debt - it should be used for absolute emergencies not every little thing your heart thinks it needs

Answer 9

use only one credit card and shred the rest. do not use cash check in stores, pay off your bills. put money in assets like investments so the money will grow by itself. limit on how many liabilities you get. ex shopping for clothes, jewelry. liabilities will only use your money and you get nothing in return for them. plus the depreciate. so you use up your money

Answer 10

Building credit is a slow and steady process.  You need to show that, over a long period of time, you can responsibly pay bills on time.

A simple way to do this is to ask your bank about a line of credit.  They approve you for a small amount - say, $1000 - and the credit line is linked to your checking account.  You don't have to touch this money at all, ever.  But it will go on your credit report that "hey, someone trusts you enough to loan you $1000 whenever you want it."

A credit card is another good way, but it's also very dangerous if you aren't careful.  Get a card with no annual fee and some sort of rewards program (cash back or airline miles, whatever you use).  Citibank PreimerPass might be good.

Use it for monthly expenses, but be careful to budget your money and always stay well within your monthly income.  The most important part is to pay the entire balance in full every single month.  Pay it like the mob is coming to break your kneecaps and burn your cat if you don't (the financial equivalent of credit card debt).  If you can responsibily pay this money, your credit score will steady climb.  As long as you have willpower and won't be tempted into spending more than you know you have, you'll be fine... but don't tempt yourself beyond your financial strength.

Answer 11

You are on the right track.

With no, or little, prior credit, you will likely have to settle on a low limit, high interest rate credit card.  As long as it is a low limit and you keep payments current, you will shortly (a year or two) be able to get a more desirable credit rating and better terms on a credit card.

When I was young and in your spot, I got a $300 limit Capital One card.  I built that up to where I now have solid credit and more credit than I will ever need.

But to say "thanks" to Capital One for being there when I needed it, I buy one or two items a year on that card so they make just a couple bucks off me and my card stays active.