Tips For Getting Credit As A Teen

These are a few tips for getting credit as quickly as possible. I suggest you study each one individually before you make a commitment.

Bank Accounts

  The first thing you should do, if you don't already have one, is open up a bank account in your name. it can be a checking or a savings it doesn't matter which one. It actually counts more for your credit history if you have both but either one generates a positive for you. As long as you maintain these accounts and keep them positive all is well. now don't go for just any bank either. Shop around and see which one works best for you. make sure to look and interest rates for the savings accounts and make sure you know any service fees there may be and how much they are. Knowing those few things can help you easily maintain your account(s) efficiently. A few of the top ranking banks right now are Bank of America, Wachovia and Citi Bank.
 

Misc. Accounts That Go In Your Credit History

Loans, Credit card and bank accounts are not the only things that go on your credit. Your renting history and utility bills also have a place in there too. Your renting history can tell a lender what kind of person you are based on how many places you've lived in the past year. The renting history's role is basically an indicator of your stability. The utilities are used in the same way. If a lender sees that you owe the electric company money he will perceive you as a high risk because electric is important and if you can't pay that then what will convince him that you will pay him for a car loan.

Credit Cards

Credit card are a good way to start getting credit. The only thing is getting approved as a teenager, I applied at six different places and did not get approved for any of them. Which by the way can hurt your credit. Just remember that if you do get a credit card to manage it properly. Make sure that you can afford the payments. Also paying the total balance all at once may not be all that good for your credit. If you remember I previously mentioned that companies look at how long you paid over time loyally rather than how quick you pay.
 

Small Loans

Small loans can help just like a credit card can. You pay them over time so you build a relationship between you and the credit companies or lenders. Generally you need 10% down of the total amount your borrowing to get a loan, plus on top of that you have to get approved. These may be a bit harder to get but will definitely improve your all over score.

Summary

Credit is not instant. It takes time and devotion. I know it will take me at least another 6 months to a year before credit agencies will even look at me for a loan for my house. Just keep it steady and don't go over your budget. The key is to keep all accounts positive and stay within your budget. When applying for credit cards look over the credit card applications carefully and look for any credit card offers companies are offering as a special that will benefit you.