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Good way to build up credit?

GamarS 415 132 August 1, 2016 at 12:48 PM
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Im starting college in a few months and Im wondering whats a good bank that I should apply for. I dont have a savings account nor a checking. My mom has a citi account but she will soon leave the country and will leave me around 20k for school,living, and food expenses. She does allow me to use her credit card but I want to start on my own. So is there any good bank to start me off as I prepare to fight the world on my own? Thanks tia.

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Joined Dec 2008
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#2
Ask your parents to put you on their accounts, initially.
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#3
Quote from GamarS View Post :
Im starting college in a few months and Im wondering whats a good bank that I should apply for. I dont have a savings account nor a checking. My mom has a citi account but she will soon leave the country and will leave me around 20k for school,living, and food expenses. She does allow me to use her credit card but I want to start on my own. So is there any good bank to start me off as I prepare to fight the world on my own? Thanks tia.
Do you have a steady source of income?

Your best bet is a secured credit card - you provide $500 or so as a deposit, and that becomes your credit limit. Over time (6 - 12 months?) of responsible usage, you can convert it to an unsecured card and/or apply for a separate unsecured card. None of the secured cards will have much in the way of rewards, so I'd just go to your nearest bank or credit union.

The most important part is to always pay the entire balance, in full, every single month. Don't spend more than you can pay back. Ideally, you'll want to keep the balance to no more than 25% of the limit, which may mean making multiple payments during the month (e.g., if your limit is $500, try not to get a balance higher than $125). Do those two things, and your score will rise as time goes by.
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Marshall: Have the rest of you guys figured out by now that mmathis is the smartest guy on SlickDeals?
#4
Credit Card- Another option to look at instead of a secured card would be a student credit card. The Discover IT credit card for students looks like a good option if you can get it, not sure what the minimum requirements would be. Discover has great customer service and has a great website and app to use. Unfortunately the same cannot be said for every company.

Bank- If you are looking for the best place to park 20k dollars then an online bank such as Discover or Ally would be good options. Ally has no fees for accounts, free checks (for the few times you need a paper check) and you can get a debit card if you need.
If you need to withdraw cash or deposit cash it might be good to be a member of a local credit union in addition to the online bank.
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#5
Like Rob mentioned there are some good student reward cards out there than can earn you decent cash back on your expenses. There are a couple different Discover student cards, one from Capital One, and Citi has one too.

To see which of those cards and others can pay you more cash back for your monthly expenses, you can use the student card reward calculator at:
http://www.creditcardtuneup.com/c...ent-cards/
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#6
ask parents to add you as an authorized user of one of their card, you can also get your own secure credit card, also cd secured loan
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#7
Quote from tennis8363 View Post :
Ask your parents to put you on their accounts, initially.
This is a good advice and I can confirm it works.

Soon as my kids turn 13 or in amex case, 15 yrs old, I added them as AU to DH and my CCs. Soon as they reach college they have already built a solid credit history. While my kids were growing, DH and I have taught them all they need to know about finances, including handling of credit cards. We didn't give them the AU cards but I taught them how to handle plastic money via reloadable prepaid cards soon as they knew how to shop. Hopefully, they'd stick to what they learned from us. My youngest is well versed in AppORamas and Mfr Spending and he's just in 8th grade.
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