Is this a terrible idea?

[naturaljax]

I have no credit to speak of (I'm only 19!!). In fact, I think I have BAD credit from overdrafting my bank account from when I was a little youngin'.

Next year I'm living in a friend's house month-by-month so there's no lease, and there's no building credit.

So, I'm thinking of doing this:

Getting a credit card, obviously do some research beforehand a get a good one, not a rip-off.

Buy something on it, i.e. a new iPod.

Pay it off on a month by month basis, in order to build up my credit.

Recently I've had run-ins with needing credit (student loans, etc.) and it's annoying as fuck to not have any.

Is this a terrible way to go about getting some?

[jayrock]

You don't have a cell phone bill or anything?

Bills = credit

[edwithoutahead]

I might be wrong but I think that if you run your debit card as credit you can build up credit. Not totally sure though...

[naturaljax]

You don't have a cell phone bill or anything?

Bills = credit

mama and papa got dat on lock

[cmirsky]

I've run into similar problems. However, I do pay bills (rent, electric, cable, etc).

Recently, I got a student credit card with my bank to build additional credit. I just make sure and pay it off almost immediately so I don't get stuck paying ridiculous amounts of interest. If you are lucky, you can grab one with some rewards as well.

But yeah, that's a good way to start building credit if you're parents are paying the bills.

[naturaljax]

right on, thanks cmrisky.

I'm thinking about it though, and I'll pay an iPod off in like 2 months :|

maybe I should buy something more substantial.

[notesee]

I'm on the same boat .. I don't have any credit yet either. Was a problem getting cable and internet installed at my place and getting a new cell phone too .. I need to do something similar.

[naturaljax]

yeah I feel you, having no credit just sucks all around.

I'm thinking of buying my plane ticket to Japan this winter on a CC.

I have a job so it'll be no problem paying it off, but that way it'll take longer to pay off, thus building up my credit more.

and also costing more :/

[rome1]

get a CC that gives you free airline miles and make sure they have none of those shitty blackout dates. This thing is like buying stuff you want or need and getting a free trip every so often. I have one and love it.

[gimmegimme]

The only thing I can add (from personal experience)...keep a LOW limit. You'll get a crappy low limit at first (500-1000 probs), but eventually, they'll keep upping it so as to create a nasty little monster named debt. If you shop like I do (we're all on sufu for a reason), this is a bad thing. Call them and have them lower it when they jack it up.

...and stay away from Amex, they're evil.

[naturaljax]

haha where the hell do you get ahold of an airline CC with NO blackout dates? Shit's like mandatory isn't it

[mr fluffernutter]

How do you go about asking for a credit card? Who do you call? I don't understand the system.

[wEstSidE]

in amerikkka they hav lyk wen u get 18 just start sendin da shitz 2 ur haus.

[gimmegimme]

How do you go about asking for a credit card? Who do you call? I don't understand the system.

are you being serious?

[naturaljax]

The only thing I can add (from personal experience)...keep a LOW limit. You'll get a crappy low limit at first (500-1000 probs), but eventually, they'll keep upping it so as to create a nasty little monster named debt. If you shop like I do (we're all on sufu for a reason), this is a bad thing. Call them and have them lower it when they jack it up.

...and stay away from Amex, they're evil.

yeah see that's what I'm scared of, I want to keep it to minimum stuff, you know?

like buy this plane ticket, then don't buy anything else until that's PAYED OFF.

Gotta play it safe.

[rome1]

Amex blue is good they allow monthly rollover none of the other Amex cards will do that and the finance charges are usually really low, mines like 9% which is crazy low! but I have had the card for 8yrs.

Njax you have to do some searching but you can find them, I have an Airtran card and a mastercard that both give me free miles. Only thing is they are not indefinite you HAVE to use them at some point, not just keep accruing points.

[gimmegimme]

Amex blue is good they allow monthly rollover none of the other Amex cards will do that and the finance charges are usually really low, mines like 9% which is crazy low! but I have had the card for 8yrs.

Njax you have to do some searching but you can find them, I have an Airtran card and a mastercard that both give me free miles. Only thing is they are not indefinite you HAVE to use them at some point, not just keep accruing points.

My amex has the rollover and all that too...but god forbid you're late by a day or something, they send the gustopo to your house to break your kneecaps!

[rome1]

oh shit yeah once or twice I forgot about it (before online bill pay) and had to fuckin overnight that shit and cross my fingers. You do have 30 days to pay a late bill so it will not show up on your credit report. You will have to pay the late fees but it WONT affect your credit score at all.

[Halifamous]

How do you go about asking for a credit card? Who do you call? I don't understand the system.

In Canada you just go to your bank, they'll do it for you.

[rome1]

In Canada you just go to your bank, they'll do it for you.

from any major CC co? Damn you go into a bank in the U.S and you have to get one of their CC's with super high interest rates.

[red]

its a terrible idea to ask sufu for advice on personal finances. the only time we have money is in the brief period between getting our paychecks, and still making a FS thread.

[sistersuzie]

In Canada you just go to your bank, they'll do it for you.

yep, and with many of the banks and credit unions, you can get lower fees and interests to pay if you're a student or under a certain age.

I know that at my work, people that are considered to have a good credit :

-pay their bills in time

-pay their rent in time

-it's also better if you live in appartment or anywhere to be on the lease, that's a proof that you pay the rent. If you're not on the lease, you can't really prove it. Well, you can't, but it way more complicated.

-and building yourself some "history" by getting a credit card is very good. But don't forget to pay it every month, it helps a lot.

[Ahlvahroe]

do research, dont fall for schemes. like today at my bank we had a special if you apply for a credit card, you get a free $5 starbucks gift card. both people that bit on my line got rejected but got their free coffee, and everytime you apply its points off your overall score. you can build with a secured credit card but those things suck all kinds of manhood.