All of my life, my mom’s credit has been complete and utter **** and I refuse to have it happen to me.
Any tips on how to start improving it?
Update:
To Bungalow-Do you mean a debit card?
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If you are working, check into local credit unions. Some have criteria to join, other just need you to live in the community. Open a checking & savings with them. Talk to them about what it is you want to do. You’re just starting out & want to take the best steps to good credit.
You can likely put “x” amount into an account & they can give you a secured credit card. This card is backed by your money. Good start is about a $2. You can add money to this card & the card will be reported with a larger limit.
In about a year, most CU’s will unsecure the card. You get your money back. They give you a card with a larger limit & a nice interest rate. As time goes by, they will lower your rate & increase your limit.
CU’s are great because they are not owned by large corporations, like banks. They are owned by members like you. They are much more leniant with folks who have bad or no credit. Beginning a long relationship with a credit union will serve you well.
I wish someone had told me this when I was your age….
“Improving” your credit is not the correct term…”establishing” your credit is what you need to do. A secured credit card might be your only choice.
– This is where you put up a deposit and your credit limit is equal to that. For example, you put up a $3 deposit and you get a credit limit equal to $3. In general, most people can get this type of card. Strangely enough, you can also be declined for these cards too even though the bank has zero risk. Honestly, you might even have trouble getting a secured credit card. 18-19 year olds are viewed as extreme credit risks and new laws have made it hard for those under 21 to get credit cards.
Open one store account, make all payments on time. After several months open a major account and continue to make payments on time. Never charge more than you are able to pay easily, and always pay more than the minimum due.