So i've been 18 for about 3 months and i wanna get a credit card. What do i need to do, where do i need to go, how does it work like whats the process, and any other info would be helpful. I tried applying online, but i kept getting denied for some reason? Tomorrow i'm planning to go to credit union and see what they can do, let me know if you think thats a good idea, and let me know if you think i might get 1 from them. Any other info would be helpful too!
Why do you want a credit card so bad? My guess is your broke and think that you will just pay it back 'whenever'.
The only cards you'll have available right now, are almost all literally intended to dig you into a hole. You'll have the highest interest rates, and the smallest margin for error if you get a card right now, on what's almost practically still your 18th birthday. That being said, if you can be TRULY responsible, if you can budget in such a way that you are absolutely CERTAIN that you pay off your balance at the end of each month, then it *can* be a good way to build your credit. If you look around online, at college websites, you'll find offers for folks in your age-range. You may be given only a $250 credit line, but just be prepared for the interest to more than make up for its small size in headaches. Here are some better options; Get a cell phone bill in your name, an electric bill, a fuel bill, an internet bill. Make a deal with your parents if you're still living at home, where they put the household bill in your name, and make the payment themselves each month as they usually would, to help you build up a good credit rating. Offer to do some extra chores, or a favor, like watching a younger sibling so your parents can have a 'date night' in exchange for their help. Saving money for a few weeks, and the delayed gratification you get from buying what you want after being responsible, is much better than learning right off the bat to rely on creditors. You don't want to inadvertently stumble into any bad habits while you're so young! It will be worth it when you're the youngest one of your friends with, not only a house in your name, but a fantastic mortgage and interest rate to go along with it! Establishing good credit as a young adult, can positively effect things like your insurance costs in the future, as well.
You have to apply for it. They look at your financial situation before issuing you a card with a certain credit limit (what you can spend max). This credit limit usually resets after you pay your bill, either early or monthly. You can apply online or over phone. Things to note with credit card: miss a payment? crazy interest. Pay too low on your balance? your credit score goes way down fuckin you up big time. ONLY get a credit card if you have money to back it up. I just got one recently to build my credit score, but I have several thousands in other bank accounts and my credit limit is $500. This alone keeps me safe as long as I check when my payment is due, and usually I pay everything off right when I buy it. it is NOT a good idea to get a CC if you wanna buy shit and worry about paying it off down the line. Get money to back it up, at least when you're starting out. Hurt your credit score now, and you're fucked for a LONG time. ALWAYS PAY ATTENTION TO IT. There are SO many factors effecting credit score, including how much of your limit you spend. If my limit is 500, and I go spending 450 right away and don't pay shit off, they look at it as overutilization of your max amount and technically "get nervous" about your situation (Because they don't know you well enough yet to trust you with so much debt) and will hit your credit score lower. Be fuckin careful man, it opens both a convenience and a scary new world to you.
If you don't have the cash you don't need it. You don't need that 2000 dollar macbook or 200 dollar shoes. Save yourself the stress of a lifetime of debt and get a job.
You want a credit card to buy things that you can't afford...? Why, just why? Credit cards don't just let you magically buy things. If you want to file bankruptcy before you're 20 then by all means go ahead.
get you a prepaid capital one or who ever credit card. You put x number of dollars in and thats your credit limit. Pay it off monthly and your build your credit don't pay it and they keep your initial payment
Well starting credit off is really hard to do, i am in a similar situation. The best thing you could do is get a student credit card from your bank and unless you have a job or some sort of income you wont get one. -Tea Guru
Good post. Only thing I would add is another option you have is getting a pre-paid card, which would also help you build a credit rating. Your credit limit is the amount of your deposit in the credit card account. Your getting denied online because you haven't held a job long enough, your age, your credit rating or any combination of the above. Don't get a credit card until you are on firm enough ground to make sure you pay it off within the grace period to avoid the atrocious interest rate. It takes you longer to dig out of a hole then it does to fall in one.
So you need a loan and you want a credit card? And you're 18? You are going to have shit credit before you're even 20.
Very good answer. YES you should get a credit card, because when you are 25 and want to buy a house or car, you will then have 7 years of credit history which will help you (assuming you've been responsible). However, ONLY get one if you actually understand what credit is and will be responsible with it. Hint: it's not something to use as income. When you buy something on a credit card, you have not acquired anything new or advanced yourself in any way. You have the object you wanted but you have a debt equal in value to that object's worth, which means your net gain is zero until you pay that debt.