Advice on Credit

[tarheelpride]

I wouldn't call this a problem (yet), but I wanted to know what I can do about it before I need it.

I don't have any credit (that I know of) and I want to start building it for the future, now.

I'm in school right now but I realize once I get out, I want to at least have some credit to go off (get an apartment, car loan for a car). I have no idea (outside of a credit card, which I admit I'm too irresponsible with money to take on right now) how to start and build it up. Any advice or suggestions anyone can give me is welcome. I wanted to build it slowly and control it from the start, instead of letting it grow out of control.

[Carolina Husker]

Open a card or two with no annual fees and make a few small purchases a month that you know you can pay off on-time, every time. Having a good credit score when you get out of college and start working full time will be important.

[Hawk]

credit card would be a good start....ask the bank for a small loan for a used car or something...start small, always make your payments and you'd be surprised how fast it will grow

[Carolina Husker]

And join a credit union if you can.

[blackcatgrowl]

Getting someone to co-sign on a car loan, or credit card is a good way.

[Scrumtrilescent]

Have all your utilities (if you have any) in your name only.

[tarheelpride]

And join a credit union if you can.

What's the difference b/w credit unions and other banks?

[Samuel L. Jackson]

I'd shoot for 2 credit cards with different companies.. no annual fee, and as low of an interest rate that you can get...

Don't use them for anything big, and pay them off as soon as the bill is due (don't let them carry a balance that carries interest)

If you have a cell phone, get it switched to your name if it isn't already (even if your parents help you pay for it)...

IF you move out to an apartment, stay with the lease through for the duration (don't break the lease to move out early)...

Basically, any sort of revolving account (something that can bill you monthly) is considered a plus on your credit score... just as long as you keep them all in good standing, and don't have too many...

[Carolina Husker]

What's the difference b/w credit unions and other banks?

Better interest rates, mainly.

[Mesmer]

What's the difference b/w credit unions and other banks?

Technically speaking they're very different. However, all you need to know is that credit unions will offer you much better rates than a bank can, and will provide better customer service.

Credit unions don't pay income tax, and can afford to offer the lower rates. Plus, they have little to no profit incentive past breaking even and generally only care about keeping you happy.

Go to Charlotte Metro or something.

The only advantage you have with someone like Bank of America is their online service is pretty awesome. Oh, and ATM's everywhere. But come on. It's 2010. How often are you really getting cash out?

[PanthersFanNY]

Before I graduated I got a credit card and used it for books and poo and just paid it at the end of the month. I also got a small car loan for my first car to establish credit and ended up paying it off about a year early.

[dimbee]

Credit Unions are non-profit organizations in the US

Banks most definitely are not such.

Credit Unions fees are significantly smaller than banks.

Credit Unions are typically more willing to lend money to their members than banks, when speaking in terms of helping establish/improve credit.

My mom is a state employee. Being her blood family, I am also a member of the State Employees Credit Union, which is so superior to any other bank I've ever banked with.

If you can get on with a credit union, do so. Their savings account interest rate is 1% better than the banks (well, mine is). Nice.

Good luck in your quest for credit. That's a smart thing to do, not only for future car purchase/apartment rental/home purchase, etc (the typical stuff), but also for future employment. My credit was checked by my employer.

[Mesmer]

Yeah credit unions can really stretch the whole "group" thing. Like Charlotte Metro, serves Charlotte people lol. Anyone in Charlotte can walk in and do business there. Most people don't know that.

[pstall]

Couple of things. Bills in your name not a factor in terms of credit. But a factor in being able to show history for a loan.

Paying your bills on time a very small piece of the credit pie.

Husker was right about the no annual fee and a purchase ever so often. You can kill two birds with one rock by paying a bill, say a cell phone, with this card. If you can get one with rewards/points even better although thats going the way of rap music.

I would suggest going out and studing creditboards dot com. EXCELLENT website. From starting out to deep financial homework.

So follow these steps.

Super duper low rate credit card.

Pay a small bill on there.

Furnish your place with some stuff. Try to do 90 days to 6 months same as cash.

You haven't heard it mentioned publicly but expect Fair Issac and his friends to change their game on how they come up with FICO.

FYI from underground. But you didn't hear that from me.