Okay, this has the potential to be really long, so bear with me. As some people have probably read in the past, I'm getting ready to start at a little vo-tech kind of school here in August. Now, finding a loan has been a HUGE pain. Long story short, I'm going to get a personal loan for $3350 to pay for my first year, as well as books. The only problem is that I didn't have any credit, and my parents have horrible credit and are currently trying to rebuild theirs. Luckily, my girlfriend's parents are going to co-sign for me, something I appreciate beyond words. I feel horrible in putting them in this position, but I'm just greatly thankful. I'm doing this loan through a local credit union, and I'm actually thinking about switching all of my banking to the place. Anyways, this whole process has interested me in trying to get some credit of my own established. On Monday, I'm going in to finish the loan, start a checking account (into which the loan will be placed) get a debit card, among other things. I'm also applying for all of the scholarships I possibly can this late in the year, in hopes of helping me pay off this loan, and possibly paying off my second and final year of schooling (which will cost 2500 bucks). Paying off some of this loan will undoubtedly start establishing credit for me, something I really look forward to doing. Now, comes the big part: Credit Cards. Is there any way I can get a credit card without having any previous credit? What are the best cards? What kind of things should I look for when getting one? Anything else I need to know? I'm wanting to get a credit card so that I can buy small things (no more than 50 bucks a month), and then pay them off right away to establish credit. There was a situation tonight that that wold have come in handy. In conclusion, I finally feel like I'm learning a little bit of good, smart finances, something that I feel is holding me back from full-fledged adulthood. This whole process just makes me feel good. It'll all fade away in time, though.
im in the same boat. skimmed through that (its too long and im alittle tired) and a friend recommended citibank for college students. i havent signed up yet, but they say you dont need credit. its the ones you sign up for from target or macys or bestbuy where you have to already havecredit. Also get like a checkings/debit card from your bank and buy stuff every now and then. but yeah someone else should chime in because i need more advice too.
lol shan. You can get one without having had one before. (Otherwise, how would you EVER?) Credit card, that is, not girlfriend. And if you're planning on using it minimally and paying it off every month (again, a credit card, not a girlfriend), then you really just want to look for something with no annual fee and the longest possible grace period for payments. Obviously a lower interest rate is nice, but if you're not going to let be an issue then why let it be a deal breaker, right? There are some charts around online that compare cards for rates, credit lines, annual fees, and so forth. Google should bring some up.
How about a secured credit card, with a reputable company? I never had one, but my understanding is that you use your own money as collateral, and that is your credit limit. For example, if you use $50 as collateral, you can't charge more than that in a month. However, it will allow you to build up credit history, without the risk of piling up massive credit card debt. See if you can find one without annual fees.
Anyone can get a CC. you will have NO problem whatsoever. and that's what's so evil about them. they want to give them to young people, b/c they're so ignorant about finances. and about that "so that I can buy small things" comment, that's the way it starts for everyone. first, you're just buying a $3 lunch. then it's only a $12 CD (if those even exists anymore), then it's a night out on the town for about $25, then it's dinner for everyone while everyone pays you cash to cover their tab and before you know it, you've maxed out your CC. trust me, once it's maxed out, it's minimum payments only. it's a ****ed up way to get a loan if you really don't understand the circumstances and consequences. Screw credit cards.
^^^^^ What he said... SO TRUE. I know a lot of young people myself included are worried about building credit in order to purchase "bigger" things as we get older but its so easy to fall into the trap of oh i'll just put it on the credit card.
I love how everyone here is saying it's so easy to get a credit card -- I've applied for two in my lifetime and been denied for both...
Get a gas card, charge only gas to it, and pay it off every month. And for the love of God, stay away from Cross Country Bank. Seriously, they can **** up your whole life. Google 'cross country bank' and you'll see what I mean.
2 rejections isn't really that big of a deal. if you had 5 then i'd probably start worrying and check your credit report.
Yeah it is kind of weird when you've paid off all your bills for the last 2 years but you still have no credit. I have avoided credit cards like the plague, but I guess it is neccessary to somehow build up credit. My solution is to get a card to a store you never shop at, make a one time purchase of something and pay it off slowly.
And what about the joke the is "free credit reports"? the Chronicle put this out last year http://www.chron.com/disp/story.mpl/business/3206545.html and I still haven't been able to get one. If someone bombed Experian, Trans-Union or Equifax I would be thrilled. Complete slime.
this is what i did when i first turned 18 and wanted to get established early. i went online and found many, many offers. after sorting through all of them i choose to go with capital one. i filled out the paperwork and in a couple of weeks i got a card with a limit of $200. that seemed like a huge limit at the time, of course i was making $7/hr at chick-fil-a and still in high school. anyway i charged a few purchases on it (not gas). food, cds, that sort of thing. the first bill came and was like $80, so i paid it off. i've done that pretty much ever since and now have a fantastic credit score. looking back on it, and advice i've been given now is when you're first starting out and trying to get established is to charge a few things, and pay slightly more than the minimum, but don't pay it off. continue this trend for 3-4 months, then go ahead and pay it all off. sure you'll probably have to pay finance charges, but people say it'll help build your credit faster by doing it this way. ALSO, never pay late, always on time. moe also has a good suggestion because that will keep you from going wild and spending beyond your means. you can get free credit reports, but it won't give you your score... i check mine on one of the different bureaus every 4 months. go here - https://www.annualcreditreport.com/cra/index.jsp
I think a lot of people seem to think credit cards are free money...until they've maxed out their cards and are in debt up to their ears. Just make sure you never spend more than you earn each month and you'll be fine.
I tried already that site with all three. They wont give me my report online. They want me to mail stuff in. It's a scam. We're sorry, for your protection we are unable to deliver your FACT Act Equifax Free Annual Credit Report on the Internet. Your personal information is used solely for identification purposes and is not shared with anyone. To request your Free Equifax Credit Report™ by mail, please fill out the attached form (PDF file) and mail to: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281 They want me to mail a copy of ID plus a copy of a bill. **** them. All three do this. They are making it as difficult as possible to get MY INFORMATION for for free. I'm sure their site would be instantly secure if I paid them money. I do my BANKING online ****ers. If banks think it is secure so should you. In fact it says "secure site" right up on your own ****ing website. These companies should be outlawed or destroyed. God I hate them.
MEOWGI, try this site: http://www.truecredit.com/ and choose the middle option. It costs $30, but it gives you your credit report (and score) from all 3 credit bureaus. You can look at it online and print it. They'll also send it to you via regular mail for no extra charge if you want. Unfortunatly, there's really no such thing as a "free" credit report.
