So you want to build your credit? Or you possibly could be trying to fix your credit and get back on the right track financially. Whatever the case, credit is so much more than what you think, credit is so much more than just a score. Is it smart to borrow money you currently do not have and may not be able to pay back in a timely manner?
I’ve recently learned from purchasing my first car, that credit is not only your score, but how much debt you actually have out right now compared to how much you currently make and need to live off of. This is called your debt to credit ratio. According to Credit Karma, a website and free credit application for phones and tablets, credit cards can be utilized to build your credit.
I myself have both good and bad experiences with credit cards. As a young adult I’ve learned one should want a card with as little fees as possible. Before you pursue a credit card, check your credit score to find out if you have poor, average or good credit.
According to a recent article by David E. Weliver, if you have no credit history, you’ll need to read up on building credit for the first time. In some cases you’ll need to get a special type of product called a secured credit card that works likes a debit card (with money you deposit in a bank account) but helps you build credit.
To build your credit, banks like Regions, Trustmark, and Bank Plus offer student checking and savings accounts that can help you manage and save money. A smaller way to save and manage your money is the ever popular prepaid visa and master cards. These cards can be found at places like Walmart, Kroger’s, and drugstores like Walgreens and CVS. They are easy to load and reload and serve as a more personal and easier way to manage your money, they are also credit check free and have no hidden or extra fees. For more information on the Kroger prepaid, click here and for more information on the Walmart prepaid, click here.
Many young adults like myself have little credit, bad credit or average credit. Listed below are credit cards perfect for each of those descriptions:
Capital One Secure Credit Card: The capital One Secure Credit Card is a great way to secure credit and or rebuild credit.
First Premier Bank Credit Card: This card is very similiar to the Capital One Secure Card. Fast and easy way to establish or rebuild your credit. Receive a $300 credit line after you pay a $95 processing fee.
Discover It Student Credit Card: This card has a low introductory rate and offers real cash back rewards tailored specifically to students.
Remember to stay on top of your credit score and debt to credit ratio and always, always use credit cards responsibly!
SOURCE: Money Under 30