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  1. #1
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    Question Building credit as a 20 year old with no job?

    You guys are all smart people, figured here would be a good place to ask. I'm 20 and I don't have a job (full time student, pre-med) but I do have more than 5 grand from buying and selling things all the time (mostly car parts). How can I start building my credit? I don't think banks will give me a credit card because I'm "high risk." I don't even want the credit to buy things I can't afford, I like to pay things in cash, but having credit in the future will be very beneficial.

    Any help is appreciated, thanks! Click here to enlarge
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    Click here to enlarge Originally Posted by EDM92 Click here to enlarge
    You guys are all smart people, figured here would be a good place to ask. I'm 20 and I don't have a job (full time student, pre-med) but I do have more than 5 grand from buying and selling things all the time (mostly car parts). How can I start building my credit? I don't think banks will give me a credit card because I'm "high risk." I don't even want the credit to buy things I can't afford, I like to pay things in cash, but having credit in the future will be very beneficial.

    Any help is appreciated, thanks! Click here to enlarge
    +1 In a similar situation, but i know a solid credit score is great to have. Im no banker, but maybe they would give you one considering you come from a wealthy background (im guessing, since BMW + Pre-med school lol) and your family could dig you out of debt if that ever occurred.
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    Get a personal loan for 500-1000 from the same bank you have the 5 grand stashed in.
    ​#Chuckstrong

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    I'm 23 & recently went through the same situation -- Expect lots of credit card applications to start coming in the mail (Discover, Capital One, AmEx, etc). Hold on to a couple of the more mainstream options (Mastercard, Visa & AmEx) cards and determine the one that best suits your needs. I would highly recommend going with the one that has the lowest interest rates.

    I would also recommend you avoid AmEx until you have steady, guaranteed income. Because you'll most likely go with their entry level card, it requires you pay off the full balance of whatever you charged.

    Whatever card you go with, don't try to "get by" with the minimum monthly payments. They'll slowly extend your credit & let you rack up more debt & eventually they'll call the debt (plus interest) in.

    The problem is that on all credit card applications, they ask what your expected income is, so this is where you might run into a problem.
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    Click here to enlarge Originally Posted by KB Click here to enlarge
    Get a personal loan for 500-1000 from the same bank you have the 5 grand stashed in.
    This is what i did, by accident.

    I wanted mod parts for my bike as a lowly E3 then E4 in the USMC and paychecks were pitifu (still are at 2x the rank/pay) but I took out small 1-1500 loans and then paid them off. I look at my credit and still see like 10 NFCU loans on there. I guess thats how I built a good history. Of course they were all paid off and replaced with "real life" things; ie credit cards and auto loans, but even those started small and gradually got larger. Took an ass-load of time, but as long as you are aware of what your doing and dont get crazy (I learned this the hardway as well; lesson learned si the reason I still have the s/c'd M3 and not the xxxx.. whoops, almost let the new car slip Click here to enlarge ) you should be ok.


    someone can correct me, but i believe you will need like 6 months on the loan for it to count. what i did was pay 2x minimum for that time on those original loans, then just paid them off. then re-did it, over and over. If yo uend up getting caught up in a large debt, look for a 0%apr balance transfer and do that. same process though, you NEED to pay at LEAST 2x the minimum, if not more

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    Assuming you have some money in the bank, try getting a secured credit card. It would definitely help you out and seems like it would be perfect for you in your current situation
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    I'm 23 and have a 740 credit score... My situation is a little different than yours since I've been working since I was 18 full time... But look into Bank of America's student credit card... That's what I did when I turned 18, they accept any student and there apr is pretty low... I started with a 300 dollar limit and goes up every year and I think it's around 20k now... Look into that card
    JB4LIFE

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    so everyone here drives a modded 3 series BMW and yet doesn't even have a credit card or any sort of credit score? this country is indeed headed in the right direction
    2007 335i (100% stock with mods)

    N54 is not a German 2JZ lol

  9. #9
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    pre-paid credit cards.

    Google them. Thats what I did.

    Click here to enlarge Originally Posted by Q4P Click here to enlarge
    so everyone here drives a modded 3 series BMW and yet doesn't even have a credit card or any sort of credit score? this country is indeed headed in the right direction
    No just the people driving BMW's Click here to enlarge

    Click here to enlarge Originally Posted by mazdaspeed6 Click here to enlarge
    I'm 23 and have a 740 credit score... My situation is a little different than yours since I've been working since I was 18 full time... But look into Bank of America's student credit card... That's what I did when I turned 18, they accept any student and there apr is pretty low... I started with a 300 dollar limit and goes up every year and I think it's around 20k now... Look into that card
    BOA is a bunch of BULL$#@! $#@! faces that should all be burned.

    They stole 20 grand from my account and never was able to tell me where it went. $#@!s!

    Click here to enlarge Originally Posted by mazdaspeed6 Click here to enlarge
    I'm 23 and have a 740 credit score... My situation is a little different than yours since I've been working since I was 18 full time... But look into Bank of America's student credit card... That's what I did when I turned 18, they accept any student and there apr is pretty low... I started with a 300 dollar limit and goes up every year and I think it's around 20k now... Look into that card
    Thats what its called "secured credit"




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    Click here to enlarge Originally Posted by E90SoFlo Click here to enlarge
    pre-paid credit cards.

    Google them. Thats what I did.



    No just the people driving BMW's Click here to enlarge



    BOA is a bunch of BULL$#@! $#@! faces that should all be burned.

    They stole 20 grand from my account and never was able to tell me where it went. $#@!s!



    Thats what its called "secured credit"
    a lot of people have issues with them, ive "knock on wood" have been problem free since day 1... and prepaid credit cars are a great way too..
    JB4LIFE

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    Click here to enlarge Originally Posted by E90SoFlo Click here to enlarge
    BOA is a bunch of BULL$#@! $#@! faces that should all be burned.
    THIS
    AE is the only one i know of that backs the consumer first

    OR a credit union.. thats what I do...

  12. #12
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    I built my credit up as a youngster on accident. Got an Abercrombie store card, never went nuts but paid it off/down as much as I could regularly. Soon enough I got more offers from better cards and had ease getting loans and such. Places like retail stores are often more likely to give you a card before a big bank (at least thats what I've noticed) because you're buying $#@! only at their place.

    I'm 31 now, have 9-10 cards that I rarely use but keep in good standing. Gone through 13 different auto loans/leases, have a 745 credit score (student loan debt sucks) and am about to buy a house. Just knowing how to manage credit will set you in the right place from the get-go and can be a very helpful tool in life.

    Having a co-signer on the account is your best bet if you have no credit history. Get a card somewhere you need to go and can pay for but mom/dad co-signs for with you to verify that if you don't have a job, someone will still pay the bill. If you're weary about a big bank card, a gas card (like exxon or shell) is good start since you obviously get gas often. Instead of paying it in cash, use the card then put the money aside you used on the car to pay each month. You really only need to do it once a month.

    Or you can try a place like Target. Even if its only a $200 limit or something, use it when you go pick up some toothpaste or something and pay it off. The amounts used aren't what brings up your score, its the history of a balance that is paid on time that will get your score to rise.

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    Click here to enlarge Originally Posted by EDM92 Click here to enlarge
    You guys are all smart people, figured here would be a good place to ask. I'm 20 and I don't have a job (full time student, pre-med) but I do have more than 5 grand from buying and selling things all the time (mostly car parts). How can I start building my credit? I don't think banks will give me a credit card because I'm "high risk." I don't even want the credit to buy things I can't afford, I like to pay things in cash, but having credit in the future will be very beneficial.

    Any help is appreciated, thanks! Click here to enlarge
    You can get a credit card. You will have an almost insulting credit limit but there are cards to start with.
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    Click here to enlarge Originally Posted by benzy89 Click here to enlarge
    They'll slowly extend your credit & let you rack up more debt & eventually they'll call the debt (plus interest) in.
    What do you mean "call it in" ?
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    Click here to enlarge Originally Posted by seth@eurocharged.com Click here to enlarge
    I'm 31 now, have 9-10 cards that I rarely use but keep in good standing.
    9-10 cards? I have 2... damn. Why so many cards?
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  16. #16
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    Click here to enlarge Originally Posted by Sticky Click here to enlarge
    What do you mean "call it in" ?
    Call it in prob poor wording; increasing your minimum payment is more accurate (which will not increase your credit rating). Credit card companies make their profits off of people over extending their credit/consistently making their minimum monthly payment.

    Like Seth said, as long as you consistently make your payments & actively use the card (doesn't need to always be big purchases), your credit will slowly go up. An inactive card, carrying debt and/or canceling & switching cards like clockwork won't do you any favors.
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  17. #17
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    Click here to enlarge Originally Posted by benzy89 Click here to enlarge
    Call it in prob poor wording; increasing your minimum payment is more accurate (which will not increase your credit rating). Credit card companies make their profits off of people over extending their credit/consistently making their minimum monthly payment.
    They won't even give me a high enough limit to get in credit card debt.
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    Get your rents to co-sign on a auto loan, that's what I did. I had a e36 328 in high school that I paid for myself but my father co-signed the loan. I'm 31 now and doing well....but you have to start somewhere.
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    When I was 18 I built my credit from being the cosigner under my GTI.. same with my Cobalt now.
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    I have found Australia much easier to get credit.

    When I was young I had no need for a credit card, but I had a few auto loans along the way that I paid off. My father co-signed on the first one. That led towards getting a credit card and then a mortgage, and I then got a second credit card (amex plat.) mainly because it had a higher limit for large purchases, the airline miles, and sometimes when travelling my Visa wont get accepted. Recently I was invited to get a Centurion card, but to me that looks like the biggest waste, just so you can whip out a black titanium card to wow the 'checkout chick'.

    Then I bought a house in Vegas a couple of years ago and tried to get a BOA credit card but they wouldn't give me one even though I paid for the house with cash; so to this day I only have a Visa Debit card with them. No huge deal but they still won't give me a credit card, I tried when I was there in September last year.

    As for the guy with 9 cards, if the US is anything like Australia, then you will want to cut back on those when you go to get a loan for a house as they will calculate your ability to service the mortgage based on those cards being maxed out.

    So, get rid of them prior to buying your house and then if you need them sign up again later if you need them.

  21. #21
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    Click here to enlarge Originally Posted by Sticky Click here to enlarge
    They won't even give me a high enough limit to get in credit card debt.
    Wish I had problems like that.
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  22. #22
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    Click here to enlarge Originally Posted by Sticky Click here to enlarge
    They won't even give me a high enough limit to get in credit card debt.

    Lol ya ok
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    You're just about all wrong I work in the credit field and the smartest thing you can do as a student is not build credit. You have no income, no method to repay so why get a credit card? This is the trap students fall into and unless you took no student loans in your name which is rare for a pre-med student. Then you have credit with student loans in deferment that will build credit on its own for you without repayment.

    Credit is easily and quickly established whenever you're ready. Now is not the best time to get a Credit Card
    We stay swingin...
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    Click here to enlarge Originally Posted by bobS Click here to enlarge
    Lol ya ok
    I'm serious.
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  25. #25
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    Click here to enlarge Originally Posted by Sledgehammer Click here to enlarge
    You have no income, no method to repay so why get a credit card?
    Um to build credit and some people do have a way to repay. Parents.
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