What is the best way to establish credit if you are a student with no credit history?
Answer:
The only trick to good credit is to make your minimum payments on time -- Always. My reccomendation (it's what I did) get a credit card, any card for any amount, and use it as long as you you know you can pay it off completely each month. Do it. When you get close your limit, they'll raise it, but just focus on a couple years of making payments on time. After that you'll get bombarded with applications. Get as many cards as you want, just always pay your minimum on time, and your credit will be perfect.
I got a citibank card in High School and it had a 30% interest rate on it. Today I have probably a dozen cards and 0% interest, because they all want reliable customers. Establishing good credit is easy, maintaining is a test of discipline.
Get a credit card in your name and in your name alone.
get a credit card, pay payments on time, and never spend the limit, and make sure its a small limit like $500.
Get a cell phone in your own name. I would say apply for a credit card but from one student to another it wasn't worth it all. But if you are wise with a credit card then be my guess.
There are cards specifically for students. Check out www.bankrate.com for the best ones. It's one thing to establish credit but another to fall into the credit card trap that many of us are writing about. Use your head. If you want a card for emergencies / ID, get a student credit card or even a secured card. Just remember. using the card is easy, repaying it is a whole other story.
Get a credit card and use it. Just make sure you always pay at least the minimum each month and don't get in over your head. In that case you'd get bad credit!!
If you are a student, you should be able to get a credit card relatively easily. I went to my bank and got one (my interest is better than any offer I've ever gotten). Just get one before you graduate--my husband waited until he was out of school and had a really hard time with it.
I say pick a store you like. Say Old Navy. This way you can have a credit card but it limits where you spend it so you don't go crazy.
join a credit union, they alot of times give small car loans on first time buyers, and get some credit cards but never carry a balance over 20 percent, but don't pay them off completely evry month, just carry a 10 to 20 percent balance and pay just a little more than the minmum payment
Get a secure credit card( credit card that let you deposit cash into the account),then charge and pay off balance every month.Do this for about a year,then try applying for any major credit card.
start a checking account, DO NOT BOUNCE A CHECK,
after about 6 months of good check usage, go to the bank and ask for a SMALL loan (I would say 500.00) If you are not sure how it would be paid back on time, STICK the money away, and use IT to pay the loan back.
Remember that you are BUILDING credit, and you have to show responsibility. While a bankruptcy will not be a credit killer like it used to be, it is still to be avoided at ALL costs.
So with that last bit of advice, STAY AWAY from credit cards.
The cards are designed to catch you and make you pay the most for the use of someone elses money, 25 percent is not hard to find anymore, BUT damn hard to pay back!
No doubt you have received credit card offers in the mail. Get ONE card. the best interest rate for you, too. Then use it sparingly, but be sure to always pay your bills on time. By using a card, you are establishing a credit record; and what you want your record to say is "Paid on time."
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