Building up your credit history is one thing but digging up a debt is another. I'm a 20 year old student with no credit history but i'm looking to start building my credit. The only thing that is holding me back are the negative statements credit cards tend to get. A lot of people tell me that getting a credit card is a burden because of the hole it can dig you in. I've never been the type to splurge my money away, but would that change if i were using a plastic card which gave me a limit on how much i can spend? How did you all start your credit up and how did it go for you all? Should i be better safe than sorry and stick without a credit card or should i start now and hopefully make good decisions?
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I am 20 also, and I have two credit cards. One with Target and one with Bank of America. I originally had a limit of $3100 on the BofA credit card. I knew that was too much so I called the credit card company and told them I am in college and there is no way I can afford such a limit.
So the said is $1000 ok I said no, $500 I said no. I picked $300 that way if I got in a bind with money $300 would not be much to come up with even if I had to borrow it.
The I did the same with my Target card, a $300 limit which I never use. The key with credit cards is to get the lowest percentage rate possible. Tell them your in college and even if you don't make basic wage just tell them that. It is all about decipline don;t use them if you don't hav the money put aside for it that day.
I'm 24 and paying off credit card debt I racked up when I was 18-20. It's easy to get sucked in when you're so young and you're excited when someone finally offers you credit. I haven't used a credit card in 4 years and yet I'm still paying them off. I would suggest starting very small as Jaquetta suggested. Ask for a lower credit limit. Or you could just get a gas or department store credit card. Just make sure you pay it off every month. It's kind of a double edged sword.. You need credit to get credit. Just be careful because it takes a lot longer to pay it off than it does to put it on!
300 is definitely easier to pay off than quickly using up the 3100.
Credit cards definately are tricky. Its very easy to get sucked in and start spending. I have a 19 year old cousin who is already in alot of debt because of credit cards. But you definately need a card to build credit, so i would suggest getting a card with low interest and a low credit limit to start out with.
Jaquetta,
You have good sense. You can't buy that!!!
Good advice, everyone!
It a trap. The credit card companies are not your friend. Remember that, and you should stay out of trouble.
My twin said the other day, "My credit card company is so nice."
I thought, ut oh, here we go again. . . .
I am also 20 years old and I am also looking to build my credit. Growing up, my father always told me that credit cards are "full-of-it". Seeing how I am 20 with no credit he told me to start of with a credit card from a bank with the lowest rate possible.
i would know what to tell since i have no credit history either, but i'm also looking to star one i just don't know how. so their's someone out there that can help me i would really app`reciate it.
My suggestion would be to get a credit card with a very low limit. Use it once a month, pay off the balance every month ON TIME. That will build your credit without the temptation of using it freely. It is easy in a weak moment to purchase something your normally wouldn't because having a credit card makes it so easy to do.
I do not think that credit cards are such a bad thing to have. It's whether you can be responsible enough to have one. I am 29 years old and only have one credit card with a $500.00 limit. Sometimes they are very good to have for emergencey purposes only. This is what I choose to use mine for. The best thing you can pay attention to is the interest rates. You don't want to get one that if you charge $20.00 on you'll pay $35.00 for it. To me that is the most important thing with choosing the right credit card company is the interests rate. Some companies you'll have to watch them. They will charge you no interest for the first six months, but will charge a very high one after the six months. Just make sure you discipline yourself with it when you choose to get one.
That's a good question! I was in a similar situation, actually needed to build up my credit at that age because of family finances. A few pieces of advice that worked for me:
1. You should already have a savings account, also if you don't already, get a checking account. You don't need anything fancy, just the cheapest most basic checking account they have.
2. A credit card thru your bank is a good idea, they're usually relatively fair and can provide overdraft protection. They do that by tying into your account with them.
3. Treat your card like cash! Probably the best advice I've gotten/can give. What I mean is, buy some of your regular stuff with the card and pay it as soon as you get the bill. Most cards, especially with banks, have a grace period. What that means is, you pay off in its entirety a charge the first time it's on a bill, and there's no interest charged. Now here's the trick, treat it just like the cash you'd otherwise have in your wallet. You charge what you know is in your account right now and will be there when the bill comes. If you do this, and make sure you have the grace period, you can build up your credit with groceries.
And always ask questions! if you're not sure about something, or even if you just want to hear it again to be sure just ask.
Thanks for the great advice. I am 35 and I don't have any credit cards. Credit cards are not the only way to build your credit. Your car loan, bank loan and even your payment history with your cell phone carrier can establish a solid credit history. If you already have credit challenges, try opening a CD and taking out a personal loan against it. That will help you.
Credit cards are a headache! When I turned 18 I opened as many as I possible could. I always paid more than the mininum. I had excellent credit and at 20 I bought my first house. Then that when the limits got higher and I spent more. Now I am in the process of paying them all off. I wish I would have stuck with one card, and only used it when I absolutly had too. My advice is to keep it at a mininum.
You have to start somewhere. Believe it or not, it's easier to get a car than it is to buy furniture! I started out with a credit card and a good idea on what to use it for is your necessities. Otherwise, I think it will become easy to overindulge your spending. When you use it on what you need and what you need only, then you can pay it off in full each time a bill comes in. That is the best thing for your credit and it will instantly build and you'll never have debt. It can be easy if you stick to your guns with it!! :o)
I agree with trying to build your credit, but with a card that has a low limit. The first thing I got was a Visa Buxx card. (Many banks offer these.) It's used as a credit card, but you put the money limit on there and you can only spend the amount of money that's on the card. This gets you used to keeping up with how much you can afford to spend and also gives you experience in using a credit card. I then got a gas card and pay it off every month. If you get in the habit of paying it off every month, you won't get into credit card debt.
David David David,
If you are a person that cn controll your self when it comes to sending and if you are good at paying your depts that you owe on time then I suggest that you get a credit card to help build your credit. I believe that cash is always better but sometimes the cash is not always around when you need it. I though I was good at handle my credit and then I lost my job and one thing lead to the next. I suggest if you get a credit card I suggest that you get the insuance that is offered to you incase anything happen to you in the future.
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