Credit Tips: Advice for a Young Person Who Needs a Credit Card

Posted On: May 1, 2006

Author: arahad06
Posted: Mon Mar 20, 2006 9:24 am
Post subject: begin a credit history

hey all,

i have this friend who just turned 18 and does not have a credit history. she asked me for some advice and i don’t know what to tell her…

what you guys think she should start out with? i don’t want her to apply for a credit card and getting denied cause there was no credit history…

how should she start?

Author: stevejk
Posted: Mon Mar 20, 2006 9:49 am
Post subject:

I think the answer others may give is apply for a gasoline or department store card. (I’d say the W-word, but don’t want to start another flame war.) They tend to be more lenient although the limits will be small, but as long as she makes purchases every so often and pays in full and on time, it will be a good thing.

Another option would be a secured credit card. Another option, which some of us did in our youth, is have a parent co-sign for a card.

The most important factor, no matter what kind of card she gets, is to use it responsibly. Never go over the limit. Always pay on time. IMHO, always pay in full each month. And taking the advice of the SNL skit, don’t buy stuff you can’t afford.

Author: TomfromCT
Posted: Mon Mar 20, 2006 10:00 am
Post subject:

Department stores can be a safe bet.

Also, being added as an authorized user on someone’s card is a great way too. (and should that person ever have credit problems you can dispute it and get it off your report.)

Walmart is pretty easy if she wants to make sure her tax burden stays high (hehehehe) right Mouse?

Secured cards can be a drag down the line so it wouldn’t be my first choice.

Secured loans, like a car loan works well. After one year of payments, she’d have a visa or mastercard. But you have to deal with car payments and car insurance which can be too expensive for an 18 yr old.

C0-signor is possible. Then eventualy you ask to have the co-signor removed when the credit is good.

Author: beyond platinum
Posted: Mon Mar 20, 2006 10:01 am
Post subject: local bank

She can also apply at her local bank or credit union but unlike major banks, they usually report to only one credit bureau. Even better if she banks at Chase or Bank of America.
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