19 Wanting to build my score.

[Anonymous]

Hi everyone ,

First I would like to thank you for taking the time to read this and giving me advice!

I am 19 years old and I would like to start building my credit score, I'm not sure about how to pursue this as I don't think I even have a score. I've always paid cash for everything, My car,phone,ect. I don't even own a credit card nor a bank account. I've learned a few things from my parents and they tell me If I don't have the cash don't buy it as owing money is never good. It's got logic to it but and it's good advice for the most part but hey everyone needs some help once in a while. I've been thinking about this topic for the last couple of months and decided to do some research today and I found this site. I originally starting looking this topic up as I would like a loan for a motorcycle, (I've got 6.5k and need a loan for around $3k) but I work in a strange field where I don't get pay stubs (Online programmer/graphic artist) so I'm guessing no one would give me a loan thus having a great score would get me approved without them needing a pay stub.

Any advice from you guys on how to even get a score would be great, Would I need to get a credit card and buy my stuff with that and then pay that off every month? If so what card would you guys recommend, I see these commercials on T.V about buying something ridiculously overpriced and they report on your credit but I feel I should not need to waste money to gain a great credit score.  Also, What score would I start with?

Thanks for helping me out on this topic, I'm in the dark on this subject 

-Michael

[guiness56]

In order to get a FICO score you need:

 At least one account that has been open for six months or more·    

 At least one undisputed account that has been reported to the credit bureau with in the past six month   

 No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased).

If you know anyone that would add you as an authorized user to an existing account in good standing, it would be instant history and you could get a FICO score, as long as its an account older than 6 months.

Other than that you could open an account with a credit union, as they are easier to obtain credit from and apply for their secured card.

Unfortunately, you are in a catch 22.  You have no credit and it will be hard to get credit because you have none.

That is why I suggest being added as someones AU for starters.  Once you have a score you could apply for CC on your own.

I have no idea what score you would start with.

[Leadberry]

Welcome.  You've got the idea--in order to build credit, you first need to use credit.  Also, you can use credit cards and still follow your parents' advice.  Just don't charge more on your card than you have available in the bank.

It will be much easier for you to obtain credit if you can have a parent or friend add you as an authorized user to one of their accounts.  This will allow their accounts to report on your credit file.  Otherwise, your best bet for a credit card will most likely be Capital One or some kind of secured card.

As far as credit scores go, you don't start out with one.  After having a credit file for six months (I believe), one will be generated based on that file.

Concerning motorcycle financing, I'm not sure you'll be able to get a bike loan without proof of income.  I pay cash for my bikes, but I have buddies who've financed a CBR 250 and a GSXR 750; both have excellent credit yet both were still required to provide proof of income.  Even if you get a couple credit cards and pay-in-full each month for a year, I'm not sure you'd find a lender to finance you.  If you did, the rate would probably be through the roof.  For $6.5k you have a ton of options as far as nice gently used bikes go...unless you're itching for any Harley bigger than a Sportster.