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how can i start building my credit with me being 20 years old?

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I started with a store card as stated above. Well Fingerhut and Amazon. After some timei got a card but it has a high interest rate and yearly/monthly fees. I saw it as a necessary evil and did it anyways to build credit. Just today I got a consolidation credit card to pay off two others. No yearly fees and 12% lower ininterest because I pay on time every month. I can now close the one with the high fees. If you are smart about payments and everything you can do a lot in a year or so. 

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Go to your bank and ask for a signature loan or a credit card to start building credit. They are pretty good about giving out $500-$1000 pretty easy for just that very purpose. once you've had it 6 months or so and paid steadily, you can ask them to increase it up $500 at a time. You don't have to max it out.. just use it once and a while, and keep it paid down. I use mine like a bank card, paying it off almost totally every month.. just leaving about $200 owing. It shows a constant payment history.. never late.. and you just get the limits on it increased up to what ever you're comfortable with.

Usually, after you have 1 card for 6 months to a year, you'll find it easier to get others. Get cards that you wont use much, and try to find ones with little or no annual fees. Get store cards like sears, JC Pennys, etc. beware the interest rates though. I only got a Sears card to buy a new refrigerator. The normal interest is like 19% BUT the deal on the refrigerator was "no interest for 12 months" so I'll have it paid off by then. I also got an additional 10% off the fridge for purchasing with a sears card, AND the fridge was already marked down 20%. Paid like $850 on a $1300 fridge. great deal!

So, store cards are good if you use them wisely.. fairly easy to get is you have SOME credit good credit history.

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Both fantastic advice. However, if you can't get a card, ask for a 'line of credit' instead. NEVER USE IT! (basically if you go in the negative on your checking account, instead of bouncing the check or declining your card the bank will pay, and you owe them back, plus interest. but interest starts from day 1 instead of like with a card after about 1 month)

If you can get a card, i recommend paying it off IN FULL every month. You will still show continual use on the card, and on time payments, but you will never pay interest. Also, it is possible to go up by more than $500 at a time. When i started out (18 years old) I had $500, then later I asked for $1,500, now, (2 years later) I have $5,000 limit on one card and $2,000 limit on another. It all depends on how good you are with your cards and paying them off etc.

A car loan (or any loan you pay on time) is a good way to build credit, but think about how much you're spending on interest alone before you jump in with both feet. There are many calculators online that will be able to tell you how much interest you'll be paying over the life of your loan. It's up to you to decide if your score going up is worth that much interest.



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I'm 20 as well.

This is what I did:

my parents were willing to cosign for my car. It's in mine and my dad's name. I have to pay the bill, but if I don't, it falls on me and my dad. I pay my bill every month by check and my credit has gone up when before, I had none.

If you have someone willing to cosign for you, you can get a car and build credit up by just that one bill. When you get higher up, you can keep it like that or apply for credit cards.

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