I am a freshman in college, I am 19 years old. During the summer and other vacations i have a part time job, during the summer i make about $250 a week. During the school year my family has been helping me out and giving me money for things at school such as gas/food/etc. I am looking to open a credit card to build my credit and i feel that i am very financially responsible, i have 2 bank accounts, one is my student account that my family is connected to, and the other is my person account for my job and stuff. I have a debit/credit card and have never over drafted my checking account, i am an accounting major and keep really good track of balancing my check book. During the school year i would probably leave the credit card at home so that i wouldn’t be tempted to use it when i wasn’t working, but during the summer i would want to make small transactions with it and then pay them back in full every month. is this smart? or should i wait? i would really like to start building my credit early. and if so can any one recommend a credit card company for me to start with? is it smart to get a line of credit from my current bank? or should i just look for one with low interest rates?
Update:
** i just want to mention, the sole purpose of me getting a credit card would be to BUILD MY CREDIT SCORE so that someday after graduation when I save enough money to buy a house i actually can. How else can I buy a house with no credit? If someone can tell me a feasible way to do that then I have no need for a credit card.
6
✅ Answers
? Favorite Answer
Since you are under age 21, new rules enacted earlier this year will prevent you from getting a credit card without an adult as a co-signer or without verifiable income. Talk with your parents to see if they are willing to co-sign on the card. If they say yes, it is very important that you use the card responsibly.
The way you described how you plan to use the card sounds reasonable. It is OK to use a credit card to pay for small purchases and pay off the bill when it is due. The key to building credit is borrowing money, then paying it back as agreed — on time and in full. You also have to remember to use a credit card sparingly. If you use more than 30% of the available credit line, it can hurt your credit score.
Go to FICO’s website (www.myfico.com) and see how credit scores are calculated and which factors are the most important.
Other loans (personal, auto, home equity) and lines of credit are ways to build your credit score. If your parents do not want to co-sign on a credit card with you, there are a few options available to you. One is trying to get a small unsecured loan (only $200-300), then paying it back in installments over time. You can see if your bank can help you with this. They may require you to use your savings to secure the loan. As long as they report to the credit bureaus that you paid back your loan as agreed, a secured loan will help you build credit. Once you’ve got a history of responsible financial behavior on your record, it will be easier for you to get other loans.
Hope this helps. Good luck!
I was in the same situation as you and I can tell you this, you will have every intention to use it responsibly and probably will, but then something will more than likely come up where you’re in need of cash that you don’t have and you’ll end up using it. When I got mine it seemed like everything that could have possibly gone wrong with my car did as soon as I got the card in. I used cash as much as I could to fix it, but I was getting desperate and ended up using the card to pay for it even though I didn’t have the money. BAD MOVE! As long as you keep in mind that the card isn’t there to bail you out, then it can be a good thing, but you slip up once or become desperate and you could completely screw yourself.
Some banks have credit cards for students that can be used for things such as books and such for school. They have low interest rates and more flexible payment options- that could be a good route to take. All in all, in my eyes credit cards are the devil, but if you use it wisely and don’t get in over your head you should be fine.
Not a bad idea, if you’re that responsible. You’ll most likely need a parent to sign for you.
If you will pay if off in full each month, interest rate won’t matter, so look for other things like no fees and reward points. Your current bank might be more likely to approve you than other banks would be.
Good luck.
NO!!!!! Avoid credit cards like the plague!! Debt sucks!! I am serious, plastic will do nothing but bury you in debt. It is so eaasy to buy “on time” that you will make purchases that you can’t really afford. Many years age I was butt deep to a tall giraffe in debt. I lived from paycheck to almost paycheck. I finally managed to extricate myself from debt and I work on the basis that if I can’t pay cash for it, I don’t get it. I am much happier now and far less stressed. I’m sorry that I’m sounding like I’m preaching to you. You sound like you are a bright person and I”m just trying to steer you clear of debt. I’m sure you don’t wish to pay up to 30% interest on your purchases.
If you have not already built your credit score, then the only type of credit card that you can get is a “secured” credit card. All other credit cards are for customers who have already built their credit score.
Yes I think it’s a good time for you to start building credit… just make sure you ALWAYS pay for your visa on time… TD rebate visa is pretty cool, you get about 100 dollars back annually depending on how much you’ve spent… they offer it for students, i think it’s a great deal, you should be able to get one… I don’t use my visa when i go to the mall for shopping only because I spend moreeee, I use my visa card usually for plane tickets, monthly fees for phone, etc, but not shopping because I tend to spend more, so i hide my card from myself lol.