How to start building credit

[Hoopster81]

I am a young student and my credit is zero. I do have a checking account. Any recommendations on getting started? I have read department store cards might be a good option. Has anyone else recently been in this situation? Thanks.

[Dead]

Have your parents co-sign for one.

I don't understand why you haven't gotten offers already.

The moment I walked onto campus as a freshman, I was inundated with credit card offers. I didn't have credit either. I have a card right now, and I only use it for emergencies.

[chaas4747]

Search OOT is your friend. Tons of post on this.

[Rick Diesel]

Get a credit card. Use it ONLY to pay for gas that you purchase. Pay it off in FULL every month. This will save you the hassle of walking inside and paying for gas. Also it will help you build some credit. If you don't have a car, you don't need a credit card, or credit for that matter.

[DBowling]

[ QUOTE ]
Get a credit card. Use it ONLY to pay for gas that you purchase. Pay it off in FULL every month. This will save you the hassle of walking inside and paying for gas. Also it will help you build some credit. If you don't have a car, you don't need a credit card, or credit for that matter.

[/ QUOTE ]
dont you end up paying more for gas this way?
the way i did it, was to put my cell phone bill on autopay with my credit card, and just pay that off every month.

[shadow29]

[ QUOTE ]
[ QUOTE ]
Get a credit card. Use it ONLY to pay for gas that you purchase. Pay it off in FULL every month. This will save you the hassle of walking inside and paying for gas. Also it will help you build some credit. If you don't have a car, you don't need a credit card, or credit for that matter.

[/ QUOTE ]
dont you end up paying more for gas this way?
the way i did it, was to put my cell phone bill on autopay with my credit card, and just pay that off every month.

[/ QUOTE ]

this is what i do

[meep_42]

Not in civilization. :P

I haven't seen a higher at the pump price for credit in about 10 years. (Wait... there is one place named "Cheap ass gas" or something out in the sticks) If you pay the balance off monthly, there is not interest.

So, for the majority of people in Metro areas, i'd say no, gas would cost the same.

-d

[inishowen]

As a student you don't need any credit record and no record is better than a bad record. It's assumed by any potential creditor that during your school years your number one priority is schooling and not financial management. Most would assume that a good record without a job is more a reflection on your parents than you, on the other hand a bad record, which is probably more likely for college students, will stay with you for 7 years. The first loan you get when out of school will be lent based on the income of your first job if you have no credit history.

A credit card in college is way too tempting, easy to blow up with it...those 2:30am pizza runs for 10 get expensive after a while. That said, if you have the discipline not to use one foolishly, and you have a job, go and get a low limit credit card and pay it off every month.

[Huskiez]

I was under the impression that paying off your credit card every month does not build credit.

The best way to is to max it out and then pay it off in full the following month. Rinse and repeat.

[DBowling]

[ QUOTE ]
I was under the impression that paying off your credit card every month does not build credit.

The best way to is to max it out and then pay it off in full the following month. Rinse and repeat.

[/ QUOTE ]

no.

[Aytumious]

If you are responsible enough you should get a card and put a small amount on it every month which you can easily pay off. Despite what has been mentioned in this thread, it can be important to start building a good credit history while in college so you actually have some type of credit history when you get out and want to buy a car, condo, etc. The main thing is to never pay late, it is the single worst thing you can do to your credit rating, and pay as much as possible, preferably the entire amount, every month.

[RunDownHouse]

This is horrible advice for all except those who can't handle money in the first place.

OP, do what others have suggested wrt charging a small amount and paying it off every month.