That Credit thread got me thinking...

[Skilla_Staz]

I'm only 18, but I'm definitely looking to build on my credit. Financially, I know this is the MOST important thing I can have. However, from what I've been told, you can't sign a loan until your 19 (at least in Nebraska), which leaves me out. I currently don't have any bills in my name, yet I'd still like to build credit.

What are some options I have, if any? Which one will help my credit the most?

 

[blackbirdbeatle]

Well, I'd say instead of waiting until you are 19 to get a loan, use compound interest to your advantage. You are so young and instead of slowly building up credit right now I would put retirement on the forefront. If you only put in like 3 or 4 thousand dollars a year for 5 years starting this year(Assuming you have a job), by the time you are ready to retire you will have accumulated seven figures easily.

In other words for the 18 year old I would say that using time to your advantage is the best thing financially for you to do.

This way you can afford to be a riskier with investments later on in life becasue you will have a nice nestegg to help you out that is guarenteed.

 

[RedPill]

I'm only 18, but I'm definitely looking to build on my credit. Financially, I know this is the MOST important thing I can have. However, from what I've been told, you can't sign a loan until your 19 (at least in Nebraska), which leaves me out. I currently don't have any bills in my name, yet I'd still like to build credit.

What are some options I have, if any? Which one will help my credit the most?

Credit is simply a number in a banking database that serves as a generalized calculation of your debt-bearing capability and short-term track record as it relates to repaying your indebtedness. It can easily be manipulated at any time.

If you want to open a revolving debt account (a credit card, typically) to establish a history for yourself, go for it. At your age, I would focus far more on developing a plan for your future on the income side of the equation. This is where everyone gets fvcked down the road, because they focus on maximizing their debt and not their income.

 

[diablo]

I'm almost 24 and have virtually perfect credit, so I feel a little qualified to answer this one...

Within a week of turning 18 I recieved a credit card from Citibank. The first purchase I used it on was a plane ticket to Amsterdam (5 days in advance). After I got back, I spent a year paying the money back before doing it again. And again. And yet again. Just be sure that each month you're paying as much as you can. Don't delay payment - ever.

The one thing that I would pass on as a lesson learned is to have the money - or at least the means - to pay off as much of your credit card debt as possible. There are people out there who owe 10k (and some graduate students who owe over 100k). Don't be one of these people. Also, don't think that you can get 5 credit cards with $120,000 in total allowances (yeah, apparently they think I'm a rock star...). Recent changes in bankruptcy laws have made it more profitable for large business instead of individual people, so maxing out your cards then moving to Europe really isn't a viable option anymore.




Then again, the girls in Amsterdam recently started accepting Visa...