An alternative you might consider would be a secured credit card which you can obtain from your local branch of most any major bank. This type of credit card is issued in conjunction with a savings account, with the maximum credit limit secured by the savings balance. This card has three benefits: First of all, it is a credit card like any other except for the limit. Second, a youth can learn the habit of credit responsibility by making timely payments each month. But most important, a secured credit card is reported monthly to one or all three credit bureaus, which makes it the fastest way to establish good credit if on-time payments are made faithfully.
Over a third of a person's credit score is based upon on-time payment history. Making payments on any reported debt, including a secured credit card, nourishes that effort. But be aware that any late payment seriously negates those efforts.
- Are Discover Card credit cards any good?
- Is a credit score of 725 considered good?
- Which bank offers the best debit card?
- Why do you rate American Express credit requirements as "good credit" to secure a card? I thought to qualify for an American Express card you have to have excellent credit.
- Supposing you have a perfect credit score of 800 or better; which credit card offers the highest credit limits?