What's the fastest and "smartest" way to establish credit?

gimmedat2640 · 05-15-2008, 11:47 PM

I'm going to be 18 soon and I want to have a fresh start and be able to get loans and such. I don't want to be that person who needs a co-signer at the 23. My parents have talked to me about establishing credit but they told me that getting a credit card would be a mistake and i truly feel that thier opinion on establishing credit was one-sided.

anavrin351 · 05-15-2008, 11:56 PM

if you go the credit card route, pay it off every month in full. Only use it for gas, and things you have the money for. Not big cool toys like i did, i hate being in debt. its only advise, but its the best advise i got.

and also cell phones dont count and neither does insurance, unless you dont pay the bill and it will hurt you.

***xRivalNightTime*** · 05-15-2008, 11:57 PM

you'll probably get rejected anyways, I know I did. The smartest way to gain credit without actually having to buy things is to get your parents to put your name under one of their credit cards. I think they can get you a card for you to use (not completely sure) and have them decide on whether or not you get the card.

ffswizzlestick · 05-16-2008, 12:07 AM

A credit card is probably the best way to establish credit. You should pay it off though. Did your parents say why it was a bad idea? Because its a great idea if you don't think that its free money and use it for things you can't afford.

***07mugencivic*** · 05-16-2008, 12:11 AM

what i did to get credit was getting cards from...target, wal-mart, jc penny, home depot, and just pay them off when you get the bill

i dont know if i got credit that way...but i have some

***0720Steve*** · 05-16-2008, 12:11 AM

get one and not use it....increase the limit.....still don't use it. or at least pay it off.....don't just make minimum monthly payments.

keep getting more cards and don't use them. your credit score works off several things, but if you have a lot of available credit, and not as much used it looks good.

ffswizzlestick · 05-16-2008, 12:22 AM

Quote:

Originally Posted by 0720Steve

get one and not use it....increase the limit.....still don't use it. or at least pay it off.....don't just make minimum monthly payments.

keep getting more cards and don't use them. your credit score works off several things, but if you have a lot of available credit, and not as much used it looks good.

But many accounts looks really bad.

anavrin351 · 05-16-2008, 12:37 AM

Quote:

Originally Posted by 0720Steve

get one and not use it....increase the limit.....still don't use it. or at least pay it off.....don't just make minimum monthly payments.

keep getting more cards and don't use them. your credit score works off several things, but if you have a lot of available credit, and not as much used it looks good.

thats one of the worst things to do. the loan company will see tat ad notice you already have a lot of available credit.(a ton of money to spend "freely") That hurts your credit. about half way on a card is where u wanna be to get another card.

A CC is the worst, unless you have the ability to control your spending. And pay it off every month. I payed it off right away the first few months, but then i went and splurged on stuff i didnt need. I am still building good credit, but financialy it sucks paying that much money in interest every month

jaysFBPsi · 05-16-2008, 12:50 AM

Like a majority of people are saying, a credit card is one the best ways to build credit. As long as you control your spending and pay it off every month, you should be fine. Try not to apply for credit or get a lot a credit cards. Both of these negatively effect your credit score. Since your just starting, one credit card should be enough. Also, keep the credit card account opened as long as possible. Having a particular credit card account opened for a long time is really good for your credit score.

I actually opened my first credit card account when I was your age. I am 22 right now, and I have an excellent credit score. Good Luck with whatever you choose.

***maximus20895*** · 05-16-2008, 12:53 AM

Also, keep in mind that every time a car dealer or any dealer looks up your credit yoru credit score goes down because of the number of inquires. The lowest score is 300 and the highest is 850. Anyone who has a 780 or higher is just bragging.

Do what everyone else says. Get a credit card, buy small amount of items per month and make damn well sure you are able to pay it off.

No credit is far worse than having credit.

BigLarr2121 · 05-16-2008, 12:55 AM

I started small with a credit card from a gas station (shell, mobil, etc.) and payed it off in full every month. This way I knew I couldn't use it to buy something big that I could not pay off. As you keep paying this off every month, your credit will start to build. With just a gas credit card for a few years, I was able to get a loan on a car. Thats all I have ever had as far as loans, and my scores are all above 700.

***vit0*** · 05-16-2008, 12:58 AM

my first credit card was capital one $300 limit cant go wrong there and now im 19 and my credit score is 720 just remember to pay it off every month you should be good

06civictx · 05-16-2008, 01:06 AM

does car payments at a dealership help build credit?

***vit0*** · 05-16-2008, 01:09 AM

Quote:

Originally Posted by 06civictx

does car payments at a dealership help build credit?

i think it depends if your financing it yourself or with a cosigner

ffswizzlestick · 05-16-2008, 01:10 AM

Quote:

Originally Posted by 06civictx

does car payments at a dealership help build credit?

If the loan is in your name then yes. Its actually better than a CC because its a set amount as opposed to random amounts.

Asif22 · 05-16-2008, 01:10 AM

I use it for stuff like gas only. I am 18 and just got my card, so I want to build good credit

ffswizzlestick · 05-16-2008, 01:12 AM

Quote:

Originally Posted by vit0

i think it depends if your financing it yourself or with a cosigner

it doesnt matter if you use a cosigner. as long as you are the main person on it, it will help. a cosigner just helps you get the original loan and has to pay if you default.

FG-Habanero-NavI · 05-16-2008, 01:41 AM

Quote:

Originally Posted by maximus20895

Also, keep in mind that every time a car dealer or any dealer looks up your credit yoru credit score goes down because of the number of inquires. The lowest score is 300 and the highest is 850. Anyone who has a 780 or higher is just bragging.

Do what everyone else says. Get a credit card, buy small amount of items per month and make damn well sure you are able to pay it off.

No credit is far worse than having credit.

Well, First off, Credit scores go to 900, not 850.. You could get a credit card.. but the most you're gonna get is like a 300 dollar limit.. With like Capital One, or Orchard Bank or something, and it's gonna be a secured credit card or something.. That's not gonna help you out at all.. I would say the best thing to do is go to your bank, and Get a line of credit from them..and make sure they report to the credit bureau. I got lucky cause I work at a dealership, and my finance manager called in a favor to get my first SI I had.. But once you get something.. the stuff will start rolling in.. but don't get every credit card offer you receive like I did.. BIG Mistake... LOL.. good luck man.

FG-Habanero-NavI · 05-16-2008, 01:43 AM

Quote:

Originally Posted by vit0

i think it depends if your financing it yourself or with a cosigner

Even if you have a co-signer, it will report to both bureaus, there is an indication on the bureau that will let the finance manager know that it was a co-signed loan.. But that will establish credit for u as well..Lots of parents do that for their kids so they can get out on their own and have credit.. it's hard to get it.

waldo08 · 05-16-2008, 01:53 AM

Get a credit card... Most banks offer start up cards and you will have to pay $50 just to get it and there is a limit of $500 on it... Too build your credit, you must pay it off before the statement's end on that credit card cycle...

I'm a credit analysis lol...

Any type of loan helps your credit but if you pay principal payment's ever month, it is even better... WAY BETTER... So if you got extra cash, pay some principal on a loan...

05-15-2008, 11:47 PM	#1 (permalink)
gimmedat2640 Member Join Date: Mar 2006 Posts: 76 iTrader: 0 / 0%	What's the fastest and "smartest" way to establish credit? I'm going to be 18 soon and I want to have a fresh start and be able to get loans and such. I don't want to be that person who needs a co-signer at the 23. My parents have talked to me about establishing credit but they told me that getting a credit card would be a mistake and i truly feel that thier opinion on establishing credit was one-sided.

05-16-2008, 12:11 AM	#5 (permalink)
*07mugencivic* Whos The Whore NOW Join Date: Feb 2007 Location: Southern CA Age: 24 Posts: 75,445 Tony iTrader: 4 / 100%	what i did to get credit was getting cards from...target, wal-mart, jc penny, home depot, and just pay them off when you get the bill i dont know if i got credit that way...but i have some __________________

05-16-2008, 12:11 AM	#6 (permalink)
*0720Steve* TWFA5FTMFW Join Date: Feb 2007 Location: San Diego Age: 26 Posts: 25,190 Resident Si Sedan Hater Hater iTrader: 13 / 100%	get one and not use it....increase the limit.....still don't use it. or at least pay it off.....don't just make minimum monthly payments. keep getting more cards and don't use them. your credit score works off several things, but if you have a lot of available credit, and not as much used it looks good. __________________ The OFFICIAL TWFA5 Crew 0720Steve's Mini City

05-16-2008, 12:53 AM	#10 (permalink)
*maximus20895* Teach me how to take pics Join Date: Apr 2006 Location: Knoxville, TN Posts: 1,750 Max iTrader: 0 / 0%	Also, keep in mind that every time a car dealer or any dealer looks up your credit yoru credit score goes down because of the number of inquires. The lowest score is 300 and the highest is 850. Anyone who has a 780 or higher is just bragging. Do what everyone else says. Get a credit card, buy small amount of items per month and make damn well sure you are able to pay it off. No credit is far worse than having credit. __________________ P2R TBS/TBGs / Fujita SRI / Skunk2 10th Anv. Knob/Radiator Cap / TWM SS/ Auger Boot TWM Cable/Base Bushings / StrutKing DP Cover / JDM Dipstick / Cleared Head/Tails / My Car Build Thread - Amilia

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

05-15-2008, 11:56 PM	#2 (permalink)
anavrin351 Senior Member Join Date: May 2007 Location: Seattle Age: 23 Posts: 2,011 Tyler iTrader: 3 / 100%	if you go the credit card route, pay it off every month in full. Only use it for gas, and things you have the money for. Not big cool toys like i did, i hate being in debt. its only advise, but its the best advise i got. and also cell phones dont count and neither does insurance, unless you dont pay the bill and it will hurt you.

05-16-2008, 12:07 AM	#4 (permalink)
ffswizzlestick Senior Member Join Date: Jan 2007 Location: Lisle, IL Posts: 734 iTrader: 0 / 0%	A credit card is probably the best way to establish credit. You should pay it off though. Did your parents say why it was a bad idea? Because its a great idea if you don't think that its free money and use it for things you can't afford.

05-16-2008, 12:50 AM	#9 (permalink)
jaysFBPsi Member Join Date: Jan 2008 Location: Vallejo/Davis Posts: 94 Jerome iTrader: 5 / 100%	Like a majority of people are saying, a credit card is one the best ways to build credit. As long as you control your spending and pay it off every month, you should be fine. Try not to apply for credit or get a lot a credit cards. Both of these negatively effect your credit score. Since your just starting, one credit card should be enough. Also, keep the credit card account opened as long as possible. Having a particular credit card account opened for a long time is really good for your credit score. I actually opened my first credit card account when I was your age. I am 22 right now, and I have an excellent credit score. Good Luck with whatever you choose.

05-16-2008, 12:55 AM	#11 (permalink)
BigLarr2121 Member Join Date: Aug 2007 Posts: 74 iTrader: 0 / 0%	I started small with a credit card from a gas station (shell, mobil, etc.) and payed it off in full every month. This way I knew I couldn't use it to buy something big that I could not pay off. As you keep paying this off every month, your credit will start to build. With just a gas credit card for a few years, I was able to get a loan on a car. Thats all I have ever had as far as loans, and my scores are all above 700.

05-16-2008, 12:58 AM	#12 (permalink)
*vit0* VIP Member Join Date: Jan 2008 Location: Plano, TX Age: 19 Posts: 621 James iTrader: 0 / 0%	my first credit card was capital one $300 limit cant go wrong there and now im 19 and my credit score is 720 just remember to pay it off every month you should be good

05-16-2008, 01:06 AM	#13 (permalink)
06civictx Senior Member Join Date: Oct 2006 Location: Your Mom's Room Age: 69 Posts: 4,753 Tim iTrader: 2 / 100%	does car payments at a dealership help build credit?

05-16-2008, 01:10 AM	#16 (permalink)
Asif22 Senior Member Join Date: Jul 2007 Location: United States Posts: 2,189 Mohamed El-Mubaslat iTrader: 0 / 0%	I use it for stuff like gas only. I am 18 and just got my card, so I want to build good credit

05-16-2008, 01:53 AM	#20 (permalink)
waldo08 Senior Member Join Date: Apr 2008 Location: Oklahoma Age: 19 Posts: 504 iTrader: 0 / 0%	Get a credit card... Most banks offer start up cards and you will have to pay $50 just to get it and there is a limit of $500 on it... Too build your credit, you must pay it off before the statement's end on that credit card cycle... I'm a credit analysis lol... Any type of loan helps your credit but if you pay principal payment's ever month, it is even better... WAY BETTER... So if you got extra cash, pay some principal on a loan...