Just turned 18, so how can I establish credit?

[Jayandrew09]

I just turned 18, so I have no credit. How can I establish a solid credit history? I was thinking about applying for the Capital Once Secured Visa Credit Card, will this help me? How long will it take to build my score, If I get a secured card? 

[Anonymous]

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@Jayandrew09 wrote:

I just turned 18, so I have no credit. How can I establish a solid credit history? I was thinking about applying for the Capital Once Secured Visa Credit Card, will this help me? How long will it take to build my score, If I get a secured card? 

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If you have access to a credit union (many credit unions are open to family members) they are a great place to start. Having one of your folks add you as an authorized user can help as well if they are responsible with their credit. You will need 6 months of history before you can be scored secured or unsecured doesn't matter. Applying for a CapOne card is OK. They just aren't going to be doing much for you.

And, just a little unsolicited advice. Be sure to use credit wisely. It's a tool and has the ability to create and destroy.

[Crashem]

If you are a student with some kind of income, student cards are open to you.  Or if you have a parent or someone with good credit who is willing to co-sign, that is another option.  Personally I avoid secured cards as they typically have annual fees eventually and don't grow with you so you have to get rid of them at some point and hurt your AAoA.  On the other hand, if you can get a no annual fee card, you can keep it forever whether or not it grows with you or not.

[rckstrscott]

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@Jayandrew09 wrote:

I just turned 18, so I have no credit. How can I establish a solid credit history? I was thinking about applying for the Capital Once Secured Visa Credit Card, will this help me? How long will it take to build my score, If I get a secured card? 

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I am just pleasantly suprised an 18 year old is asking questions like this on a forum... had I asked questioned like this,  I wouldn't be 33 years old on this forum rebuilding my credit

-scott

[Anonymous]

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@Crashem wrote:

If you are a student with some kind of income, student cards are open to you.  Or if you have a parent or someone with good credit who is willing to co-sign, that is another option.  Personally I avoid secured cards as they typically have annual fees eventually and don't grow with you so you have to get rid of them at some point and hurt your AAoA.  On the other hand, if you can get a no annual fee card, you can keep it forever whether or not it grows with you or not.

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Getting rid of a card does not hurt your AAoA.  If you open a card today, and close it in a year, it will be a year old.  Two years later, it will be 3 years old, even if it is still closed.  AAoA includes all accounts, open and closed.  Secured cards are great, even if they don't grow.  They allow you to have a small credit history until you get prime cards.  Then you ditch the secured cards.

Note: They will eventually impact your AAoA as they will fall off your reports 10 years after being closed.  However, by this time, your new prime cards will all be 10 years old and the effect will be extremely minimal.

[LS2982]

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@Anonymous wrote:

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@Jayandrew09 wrote:

I just turned 18, so I have no credit. How can I establish a solid credit history? I was thinking about applying for the Capital Once Secured Visa Credit Card, will this help me? How long will it take to build my score, If I get a secured card? 

---

If you have access to a credit union (many credit unions are open to family members) they are a great place to start. Having one of your folks add you as an authorized user can help as well if they are responsible with their credit. You will need 6 months of history before you can be scored secured or unsecured doesn't matter. Applying for a CapOne card is OK. They just aren't going to be doing much for you.

And, just a little unsolicited advice. Be sure to use credit wisely. It's a tool and has the ability to create and destroy.

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+1

[LS2982]

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@rckstrscott wrote:

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@Jayandrew09 wrote:

I just turned 18, so I have no credit. How can I establish a solid credit history? I was thinking about applying for the Capital Once Secured Visa Credit Card, will this help me? How long will it take to build my score, If I get a secured card? 

---

I am just pleasantly suprised an 18 year old is asking questions like this on a forum... had I asked questioned like this,  I wouldn't be 33 years old on this forum rebuilding my credit

-scott

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Big +1! Same here!

[marty56]

I would also join a local CU if you qualify for their membership rules.  May not offer you a CC right away but think down the road a bit.  On building credit it took me 20 years to destroy my credit and over 10 years to rebuild and I am still not 100% done.  It takes time.  Don't rush like I did.

Just hang out in the forum here we got your back.

God I wish this forum existed in 1979.

[SwiftTone]

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@Anonymous wrote:

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@Crashem wrote:

If you are a student with some kind of income, student cards are open to you.  Or if you have a parent or someone with good credit who is willing to co-sign, that is another option.  Personally I avoid secured cards as they typically have annual fees eventually and don't grow with you so you have to get rid of them at some point and hurt your AAoA.  On the other hand, if you can get a no annual fee card, you can keep it forever whether or not it grows with you or not.

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Getting rid of a card does not hurt your AAoA.  If you open a card today, and close it in a year, it will be a year old.  Two years later, it will be 3 years old, even if it is still closed.  AAoA includes all accounts, open and closed.  Secured cards are great, even if they don't grow.  They allow you to have a small credit history until you get prime cards.  Then you ditch the secured cards.

Note: They will eventually impact your AAoA as they will fall off your reports 10 years after being closed.  However, by this time, your new prime cards will all be 10 years old and the effect will be extremely minimal.

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Wait a second. I understand your logic, but I've always been under the impression that on this forum, when people talk about AAoA, it'sregarding open accounts.

[Anonymous]

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@SwiftTone wrote:

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@Anonymous wrote:

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@Crashem wrote:

If you are a student with some kind of income, student cards are open to you.  Or if you have a parent or someone with good credit who is willing to co-sign, that is another option.  Personally I avoid secured cards as they typically have annual fees eventually and don't grow with you so you have to get rid of them at some point and hurt your AAoA.  On the other hand, if you can get a no annual fee card, you can keep it forever whether or not it grows with you or not.

---

Getting rid of a card does not hurt your AAoA.  If you open a card today, and close it in a year, it will be a year old.  Two years later, it will be 3 years old, even if it is still closed.  AAoA includes all accounts, open and closed.  Secured cards are great, even if they don't grow.  They allow you to have a small credit history until you get prime cards.  Then you ditch the secured cards.

Note: They will eventually impact your AAoA as they will fall off your reports 10 years after being closed.  However, by this time, your new prime cards will all be 10 years old and the effect will be extremely minimal.

---

Wait a second. I understand your logic, but I've always been under the impression that on this forum, when people talk about AAoA, it'sregarding open accounts.

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Nope.  AAoA includes all OC accounts.  I think collections are excluded though, but I know that closed OC accounts do count towards the AAoA.  The only way it impacts your AAoA to close an account is in 10 years.  After being closed for 10 years, it will disappear from your credit report.  However, if you replaced it with a new one, this won't really matter by then.

People here will suggest you not open new accounts, but not because closing the old one is bad for your AAoA.  It is the new one that lowers it.  Sometimes closing CCs can increase your utilization, and that could cause a FICO decrease.  But yeah, AAoA is not changed at all based on an account being open or closed.