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Valued Member
markymark313
Posts: 31
Registered: ‎05-13-2008

18 year old trying to build credit, need help.

[ Edited ]
Hello, This is my first post so please bear with me. I'm 18 years old trying to build my credit. A little information, I currently have one credit card. A chase card. It started with a $500 limit but after paying it every month in full they increased my limit without me even asking to $1000. I opened this account in November of 07. They increased my limit in March. I tried purchasing my fico score maybe two weeks ago but it didn't go through as I didn't have a fico score being that i just started my credit, turned 18 in October. But I tried again today and it went through, and my equifax fico is 666. that chase card and a sprint wireless phone is all i have under my name, both accounts paid in full every month. what i'm asking for is tips on how to build my credit fast, if that's possible. I'm trying to purchase a vehicle with financing. i went to the dealership maybe 3 weeks ago and they didn't deny me but they couldn't approve me for the car i wanted. at that time the sales guy told me I don't even have a fico score so it's going to be hard to approve me but I had somewhat of a large downpayment. but since they couldn't approve me for the car i wanted, they wanted to give me a cheaper model with less options which i didn't want, i passed. i understand if i would've went with the cheaper model it would've helped my credit and i could've traded it in after 18 months like the salesman told me, but i didn't want to go that route. i'd rather wait to get the car that i want and will be happy with. i have a job with steady income, i live with my parents so i don't have to pay any bills besides my credit card and phone bill. so all the money I make I save, thats why i had a big downpayment. sorry for the long post, once i started i couldn't stop. any tips for someone just starting out trying to build credit? Message Edited by markymark313 on 05-13-2008 06:02 AM

Message Edited by markymark313 on 05-13-2008 06:29 AM
Valued Contributor
cobra19
Posts: 1,426
Registered: ‎07-24-2007

Re: 18 year old trying to build credit, need help.

When I was 18, AMEX send me a pre-approval for the Green card, which I accepted. I also established credit with Chase (they were known as Chemical Bank then) at 18. Then Macys followed, then Shell.  Thing is, I had no idea what my scores were back then. In fact, I was so stupid, I didn't even know what a credit score was when I was 18.
 
I would visit my local CU - they are usually very good in understanding the problems young folks face when trying to establish credit for the first time.  
 
Some store and gas cards are relatively easy to obtain. I think (some might disagree) a store card like Macys and a gas card like Shell or Exxon/Mobil are relatively easy to obtain.
 
  
 
 
New York Yankees - 2009 World Series Champions. 27... and counting.....
Valued Member
markymark313
Posts: 31
Registered: ‎05-13-2008

Re: 18 year old trying to build credit, need help.

well see, i received an offer for a capital one card in the mail telling me that i'm "eligible". i applied online and was denied. i also already did what you said and applied for a chase marathon gas card, again denied. being that i didn't have a fico score during the time i applied for these cards, do you think thats maybe the reason why?
Established Contributor
Jesedmotherof5
Posts: 537
Registered: ‎04-02-2008

Re: 18 year old trying to build credit, need help.

Hi- I so wish I was as smart as you at 18! Good job for not settleling for the car you didnt want!
First off make sure your current credit cards balance is as low as possible 9 % UTI is best how you calculate that is take how much you owe and divided it by 1000 your credit limit. 
 
Heah on over to the Credit card forum or check out whogavemecredit.com so you can get some Credit in your name.... Just dont forget about this site when you are done.... it will help you from messing up your credit once established!
Much luck to you 
Jessica
6/9/08 FICO TU 697 EX698 EQ 618uti 6% (once new accounts hit) BIZ- DUNS 80, EX 35
GOAL 2008- 700s+ new car
2010 BE a first time buyer
Regular Contributor
shawnette
Posts: 216
Registered: ‎06-06-2007

Re: 18 year old trying to build credit, need help.

I would definitely recommend opening an account at a credit union (NFCU is awesome if you meet the requirements for membership). 
 
Now that you know you have an EQ score, you might have better luck.  I know here in FL, most companies pull EQ.  Try Cap 1 again, but choose the "No Credit" card and you'll be approved.  Also, Crown Jewelers will give you a card with a $1500 limit, no inquiry.  It reports to EX & TU, but you do have to make a purchase.  (I just bought the cheapest thing that I might wear)
Valued Member
markymark313
Posts: 31
Registered: ‎05-13-2008

Re: 18 year old trying to build credit, need help.

thanks for the help guys. you guys recommend to join a cu, right? i've heard of a credit union before but i don't actually know what they are. can someone explain?
Established Member
Jayroc80
Posts: 20
Registered: ‎05-06-2008

Re: 18 year old trying to build credit, need help.



markymark313 wrote:
thanks for the help guys. you guys recommend to join a cu, right? i've heard of a credit union before but i don't actually know what they are. can someone explain?

The Benefits of Credit Unions

Credit unions, around since 1935, are not-for-profit cooperative financial institutions created by people with a common affiliation, such as belonging to a labor union, an association, or even working or living in the same place. Members deposit money into — and save money in — credit unions. The money is then returned to the members in the form of loans at better rates than most banks. In addition, you can save on bank fees.

The National Credit Union Administration (NCUA), an agency of the federal government, regulates credit unions, which are federal- or state-chartered, and must adhere to strict guidelines. Most credit unions have deposits of up to $100,000 insured through the NCUA.

Initially, credit unions were designed to benefit people who were not being served by banks, such as those who were not approved for bank loans. Today, however, credit unions have become widespread. There are nearly 10,000 credit unions in the United States with combined assets of more than $500 billion. They are able to beat banks in nearly all categories of loan interest rates because they're nonprofit, and as a result, don't have to pay taxes.

While the competition doesn’t please the banking world, there are additional benefits to using a credit union, including:

1. Nonprofit status. For-profit banks and other lending institutions are looking for a return on an investment when a member takes out a loan. Credit unions, however, have no stockholders looking at the return on their investment.

2. Democratic process. The board of directors is elected by the union's membership, and works on a volunteer basis. Unlike banks, credit union members have a direct say in who's elected to run the credit union.

3. Inclusiveness. Credit unions have long-standing reputations for allowing spouses, siblings, and children of members to join.

4. Lower fees. Comparatively, credit unions have lower fees for services than banks.

5. Better interest rates on loans. Interest rates are typically better through credit unions, which traditionally have been among the leaders in auto loans.

6. Funds returned to members. If there are excess funds, they are generally returned to the members in the form of dividends.

7. Credit unions are generally easy to join. You need only ask your employer, family members, or neighbors about credit unions that they may be part of. The process is then fairly simple, and minimum balances are usually very low.

One thing you should keep in mind is how convenient the credit union is to your home or office. Since credit unions typically do not have as many branches as banks, you should look for one that's nearby. As credit unions merge and grow (some have assets in the billions of dollars), it's becoming much easier to find convenient branches.

The Credit Union National Association, www.cuna.org, can help you locate a credit union in your area

TU - 530, EX - 595, EQ - 580 10-13-2007
TU - 623, EX - 637, EQ - 648 4-25-2008
TU - 623, EX - 655, EQ - 630 5-19-2008
Regular Contributor
tidbit1
Posts: 179
Registered: ‎09-16-2007

Re: 18 year old trying to build credit, need help.

Maybe you could try for  store card?   I applied and recieved a few last November and my score was below 666.
Valued Member
markymark313
Posts: 31
Registered: ‎05-13-2008

Re: 18 year old trying to build credit, need help.

thanks for all the help guys. i did what a few of you recommended and applied for a target card. my mom and sister always shop at target so it'll be a good card for them and i'll make sure that they pay it in full every month. and if you take a look at my EQ credit score, it jumped from 666 to 696. 30 POINT INCREASE!! the only reason i can think of is that chase reported my payment with no balance. i wanna bite the bullet and see what TU is reporting since the TU report shows that I have a $490 balance. but I don't feel like paying the $10.95 and I already used my free power report for EQ. how come score watch didn't update with such a big increase?

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