How to start establishing credit at 18?
Credit is a valuable asset in today’s world. It can help you finance a home, take a bigger car on lease, or even receive fast approval for a loan to start a business. Today, having a good credit score is essential to getting a loan, and according to Statista, 43% of Americans have an FICO credit score of 620 or above.
The credit card companies and finance companies that offer credit at 18 typically look at several factors when they assess your creditworthiness They will evaluate your financial history, your credit report, and your needs.
They might also look at your educational background and the length of time you’ve been working.
How to start establishing credit at school age?
If you’re a teen, or even a preteen, and you’re looking to start building a credit history, one of the best ways to establish credit is through your school’s extracurricular activities.
Doing so helps to show potential employers and financial institutions that you are capable of paying for your own things—a key component of credit building. Many parents consider credit cards when their children are teenagers. After all, it seems like a great idea: Just let your teen have a credit card or two and they’ll learn how to manage it.
But there are some downsides to this strategy. Credit cards are a temptation for teens to use for things they don’t have the money for. Plus, credit can affect their credit scores for years to come.
While it may seem tempting to help your teen ease into adulthood by giving
How to establish credit at ?
At under 18, it’s generally pretty difficult to apply for a credit card on your own, especially if you don’t live with an adult who has a credit card. Fortunately, there are ways to start building credit under the age of 18, including by using a secured credit card.
The key to establishing credit when you’re under the age of 18 is to start with a low limit, such as $500 or $1000. The lower the credit limit is, the less of a risk it will be for you to take on credit. Plus, the lower the credit limit is, the easier it will be to pay off any credit card balances that you may have.
How to start establishing credit at ?
Assuming you’ve built a solid savings and investment portfolio, the next step to building a credit history is to apply for a credit card or use a credit card you have that’s on a balance that you pay off each month. You can also look into a secured credit card, which allows you to borrow against your account balance.
Your credit history begins when you first use credit, and even when you're a teen, you can establish credit history. If you have a parent who cosigned a credit card or auto loan for you when you were a teen, or you have a credit card or loan account that you've had since you were a child, that can help establish credit history.
How to start establishing credit at age ?
It’s important to start applying for credit by age 18, even if you don’t qualify. It will have a positive effect on your credit report, and it shows the credit bureaus that you’re responsible. Be sure to only apply for credit cards with low amounts; don’t take on too much risk. You can also apply for a secured credit card (or installment loan) so that you can pay off your balance each month. If you are under the age of 18, it is difficult to establish credit on your own. If you have a parent or guardian who is willing to cosign a credit card or loan for you, you can start building credit sooner rather than later. However, if you are still under the age of 18 and looking to establish credit on your own, you will need to seek help from a company that can assist you.
