Which way is best for me to start my credit?

Question

I was thinking of either putting half down on a Mac, and paying the rest monthly with their "Bill Me Later" program.

or, getting a credit card for a department store like Macy's or Dillard's.

I think it would be easier for me to do the former, because it would just be a monthly bill, but my sister said that if I charge something on to the credit card I could pay it right back from my debit card. I don't know which to choose.

Answer 1

get a gas card.

Answer 2

Establish checking and savings accounts

Here's a basic step that's sometimes overlooked by people seeking credit. Lenders see bank accounts as signs of stability.

Opening checking and savings accounts is also one of the few things you can do as a minor to start building a financial history. While you can't get a credit card in your own name until you're 18 and can be legally held to a contract, many banks have no problem letting you open an account.

If your bank balks, look around for another bank or consider opening a joint account with an adult.

Understand the basics of credit scoring

You need to know that the two most important factors in your scores are:

Whether you pay your bills on time.

How much of your available credit you actually use.

It's essential that you pay all your bills on time, all the time. Set up automatic payments or reminder systems so that you're never, ever late. All it takes is a single missed payment to trash your credit scores -- and it can take seven years for the effects to completely disappear.

You also don't want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits (10% is better) will help you get the best possible credit scores -- and should help keep you from getting over your head in debt, as well.

Finally, you don't need to carry a balance on a credit card to have good credit scores. Paying your bill in full each month is the best way to keep your finances in shape and build your credit at the same time.

Piggyback on someone else's good credit

The fastest way to establish a credit history can be to "borrow" another's record, either by being added to a credit card as a joint account holder or by getting someone to co-sign a loan for you.

Having a co-signer can allow you to qualify for loans you might not otherwise get. The loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit scores.

If you default, however, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.

Being added as a joint account holder also has its risks, for you as well as the person giving you access to the card.

If your father adds you to his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn't, his mistakes would also become yours. You become responsible for any debt on the card, and it's difficult to get your name removed. Any late payments or other problems could make it harder for you to get future credit than if you'd established your history without help.

Being added as an authorized user to a credit card will no longer help you build a credit history. After credit-repair companies took advantage of the system and lenders protested, score-keeping companies are ignoring authorized-user information.

Apply for credit while you're a college student

Credit experts used to warn college students away from those booths set up on campus by credit card lenders -- the ones that promise free stuff for signing up. It turns out, however, that there's no easier time to get a card than while you're a college student, said Gerri Detweiler, author of "The Ultimate Credit Handbook."

Lenders are willing to take risks with you that they won't once you graduate, probably because they know that your parents' willingness to bail you out will end once you get your sheepskin.

Answer 3

Start with a loan..

Answer 4

Do a Kohls card or something and buy stuff little by little and pay it off monthy and every once and a while pay in bigger chunks....worked for me a long time ago.  ;)

Answer 5

Don't try the charge and then pay back from your debit card, that is doomed to fail! The Mac would work, but pay down as much as you can and pay it on time every month.  That way you have a fixed amount every month.  With the credit card, the balance could get out of hand.

Answer 6

Compare the APR's

Which option would cost you more ? and pick the cheapest.

Answer 7

Any credit account will be good.

Weither its a credit card or stor account.

What I would suggest is checking to see wha the interest is on the computer.

If its not high , buy it on credit.

Then transfer the balance to a credit card that as a low interest rates. Many cards have 0 % for the first few months.

Transfering the balance from the computer company to your card will look like you paid off the computer to the computer cmpany.

Answer 8

why do u want to do it at all ?????

Answer 9

you can try with a loan but you will need a cosigner because you have no credit. thats what i had to do.

Answer 10

If you're a student, apply for a student visa/mastercard. Your limit will be low, around $1000, and you can pay for everyday purchases with your card versus using debit or cash and pay it straight away when you get home, as your sister said. This will ensure you're actually building credit by USING your card, but also ensuring you're not going to become irresponsible with it! Hope this helps.

Answer 11

I would not do the credit card because a credit card will put you into debt the fastest of anything...i would go with your instinct and do the bill me later

hope this helps

Answer 12

Get a credit card and pay on time.  Don't use more than 50% of your limit.  Use the card for EVERYTHING and pay it off when you get home.  Don't spend more that you have in your bank account.

Try and get a card with points so you get **** for using it.

Just don't be stupid like I was and not pay your card...it will catch up with you.

Answer 13

credit companies want to make money off you, so just slowly pay off any bills and dont let it get out of hand. planning is the most important thing you can do.

Answer 14

The easiest way to start your credit is a store credit card. I doubt you would be approved for the Bill Me Later program with no credit.

Answer 15

Try to build credit without credit cards.

To avoid common mistakes while buiding credit, I recommend this one - http://buildcredit.ifastnet.com - to monitor changes in you score and pre-estimate future scores for different scenarios of payments.

Answer 16

Try not to really have any funds owing on your credit cards. They should be paid off every month. This way you do not pay interest.

At the same time you should use the credit card as much as you can. This is the best way to build your credit score.

Answer 17

God NO!!!,

I remember being 19-21 and getting sucked into the credit world with electronics. For God's sake don't do it!

It's like smoking, over time it gets worse, you'll need more, and it gets insanely expensive.

You hear about older people who saved money, paid cash, if they couldn't afford it they didn't buy it, and now they have TONS of money in bank, while those in debt have no money, will owe it until they die, and their kids will be paying for their parent's debt.

Turn away, turn away!!

Answer 18

how old are you? when i was younger i started a checking account that had a credit card connected to it in case of over drawing. I used this credit card once a month for a $20 gas purchase and paid it off. now my credit is awesome and im only 21.  just make sure you dont buy anything you cant pay for and dont go over board with the credit cards. if you make only the minimum payment you will s***w yourself over very quickly. never buy anything that you dont have all the money for right now. dont say you will have the money in  month or whatever because what if an emergency comes up that you end up needing that money for instead? then you will get behind on your payments and the interest rate on your first credit card is going to be 23% or higher. be very careful

Answer 19

This what I did.  Start with a 2 year contract phone.  Make sure your bill ranges between $10 and $60.  For as much money you receive or make a month put back $15 dollars per week.  So, if you bill is $60 a month, you have enough and I am pretty sure that there will not be no more than a $5 tax.  Open a savings account if you like.  There is not one month that a person will go by without getting 5 to 10 dollars from a friend, birthday, distant family member, or relative.  Mom and dad would pitch in for that.  A piggy bank would be good also. Try to stay away from credit cards.  Try using money orders or checks in which you know you have atleast $100 (dollars) in the bank.  Some cellphone places allow you to pay cash for a bill.  If you can not put down that credit card, put only so much amount of money on that card in order to pay your bill each month.  I hope this was helpful.   A credit card is not for everything.   How old are you anyway.

Answer 20

Put it on a credit card and pay it off immediately.  This is the best way to build perfect credit and a good base for how to use a credit card for ANYTHING.

The average American is 12,000 in debt.  Don't be a part of that.

Answer 21

Starting your credit, the best thing to do is start with a loan, from a small loan company, since you have no credit they will start you off at like 100 dollars and have a paymnt plan of like 5 pmnts of 25 dollars and the best way to pay is mnthly! that's the way you built your credit, don't just pay it all off you don't built credit like that, and ask them if they report to the credit bureaus those are the ones you want to go with.

Answer 22

try bill me later program help me

Answer 23

The best way is to go to a Jewelry store and get a piece of jewelry for $500, they'll give you an account and then you start paying it off month to month. At jewelry stores is much easier to get approved for credit.