Stock Mama
Full Member
Cash: $ 13.80
Posts: 68
Joined: 06 Apr 2006
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It's kind of hard to improve a credit history when you haven't any. But building a credit history shouldn't be too hard.
There are lots of secured credit cards out there, and though lots of them are scams, if you go with a reputable company such as VISA, you can get a card that works kind of like a debit card: you deposit money into the account, then you use the card to spend the money. Some parents use these accounts as a way to give their kids an allowance. It's just a plastic allowance instead of bills and coins for their piggy banks.
That's probably your best option to start with, and using one helps build the good habit of never spending more with your card than you can pay off immediately (because you can't).
When you turn 18, the company will probably congratulate you by sending you a credit card offer. As will ten dozen other companies, especially if you apply to a college.
Just don't fall for one of those campus schemes where you're offered a free sandwich or t-shirt if you participate in a student promotion, and to get your free stuff you end up giving them your name, address, social security number, mother's maiden name, school ID number, a photo of your photo ID, your signature, and what bank you have an account with. I kid you not. The forms may have had the name of a legitimate bank on them, but it looked to me like the perfect set-up for ID theft. At the very least, it looked as though kids were signing up for a credit card, but were being told they'd be sent "information."
If your parents are planning on getting you a new computer or similar large-purchase item in the near future, ask if instead of buying it for you, they'll co-sign a loan with you. That way your name will be on the loan, even if they plan to pay it all (or you could offer to pay part of it, good child that you are), and you can piggyback on their good payment history.
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