18 and ready to build!

[Anonymous]

    I turned eighteen not too long ago and decided to take a leap and build my credit. I did a ton of reserach before I applied for anything and saw that as my credit was zero, I needed a secured card. I applied for the Discover Secured card with a $200 depsoit as that's all I could afford and surely I was approved! I received my card not too long ago and have made the responsible decision of not spending more than a $100 as I want to pay it off in full every month. I'm very excited about this and just wanted to share! 

   I'd also like some advice on when it would be right to apply for another card, one that's not secured. I currently have my eyes set on the Chase Freedom but know that'll take some time to get to. Any idea what my credit score needs to be like (as well as income) in order to get such a card? And how long it would take to reach said score? I hear it works great with Chase Sapphire Preferred, and I'm wanting to get that, too! 

Thank you in advance!

All advice is appreciated. 

[Creditplz]

You're currently on the right track to a good healthy credit file! You want to have at least 6 months of payment history before you do ANYTHING!!

Do not apply for anything till the 6 months of payment history on your discover, once you generate a score you might be tempted because it'll most likely be 700+ if you don't let it report over 30% utilization.

Also you won't be pre-qualified on chase, Cap1, Citi due to your age.. good luck!

[Anonymous]

Congrats on getting the best card you probably could. You need to wait 6 months to a year before applying for another card. If you apply for the Freedom as your second card, know that it will most likely overlap with the Discover It card (which I believe you can switch to once your card graduates from a secured card to unsecured). Personally, I would probably recommend a Freedom Unlimited or Quicksilver if you are able to switch to the It card, unless the 5% categories are really going to get used. The FU card if you plan on using UR for travel in the future, the Quicksilver if you aren't planning on travelling.

Besides that, when you decide to apply for your second card, look at where you spend your money. You may find a card like the Marvel Mastercard beneficial (as I know many young people eat out and go to concerts and such.) for the 3% in dining and entertainment purchases (includes bookstores that should include most Amazon purchases). Remember to pick cards that benefit you based on your spending and desire for how to redeem rewards. And always pay in full.

[601flyguy]

Get a secured savings loan too. One that doesn't require a hard pull, but reports. It will build installment payment history while the secured credit card builds revolving payment history. This would get you rolling nicely with no hard pulls.

[jdxprs1]

check out one of the self loan places. it will report as an installment loan which will give you a good MIX of credit, plus its a great way for an 18 year old to save a little money. wish something like them was around when i was your age.

[Anonymous]

Everything listed above looks like sound advice to take.

I'm very impressed with an 18 year old taking their own reigns like this. Hats off to you. Please keep this interest and dilligence in your credit forever. 

As you've researched, there are plenty of negative stories on here to learn from as well

[K-in-Boston]

Congrats and I am also impressed.  If I were just starting today, I would have gone for the secure Discover, the 99/500 secured Bank of America card and a share secured loan to get started.  Then after a year, I would have gone for a card with PenFed and either Chase or Citi.

[andyaycw]

Congrats OP, you are well on your way to an 800+ FICO, and definitely great that you're starting here on these forums. It reminds me of how I started some 10+ years ago when I was in your shoes...18 and looking to building credit and wanting to make sure I did everything the right way. 

One thing I haven't seen mentioned is College Student credit cards. You might want to take a look at some through Citibank if you're eligible. 

When I was 18 and had no credit at all, Citibank approved me for not one, but two College Student credit cards about a month apart from each other. If I recall correctly, at the time it was the Platinum Select for College Students, and Citi Driver's Edge for College Students. Starting credit lines were $1200 and $1000. I continued to play the FICO game by asking for CLIs every 6-12 months, throwing in a new credit card app every 12 months or so with one of the major issuers (Amex, Discover, Chase, etc.)

That strategy worked incredibly well for me, and as a result I was fortunate enough to never have to deal with going the route of secured credit cards to build my credit profile.

Good luck!

[Anonymous]

If I was just starting out I would do 3 secured cards with prime banks.  Discover, Cap One, and BoA.  Let those grow with history and don't app for anymore cards for a year.  Then you can take it from there.  Have a plan for Chase 5/24.  And avoid store cards from small stores.

[Anonymous]

Cap1 secured is a good idea as Wave mentioned... I got mine as my first card with a $49 deposit... It's still secured but hey it's my oldest card and a good friend of mine

Discover will let you have up to four designs if your not fond of the basic secured it color... I ended up with Ocean, Raspberry, and the Cassette Tape... They will all be under the same account number you can just go to change my card design in your online account