im 19 and trying to build my credit to buy a house of my own very soon. i tried a gas card and a few other things to that sort but cant get anything because i have no credit established.

i was wondering whats the best plan to kick off building credit? i have thought buy something like a 4-wheeler or anything i would enjoy but help build. Problem is, I dont know if i could be approved.

my plan is to buy something in that range of price 5-9k and put half down or so and pay off the rest through a small loan. i dont want another car because i have no use but need a good idea.

thanks fellas im sure yall have some good ideas!

 

open up a credit card or two with no annual fee, use them for minimal purchases and pay them off right away! thats a very easy way to get it started. It goes up from there

 

Ive never understood the "credit" thing..
If you dont have any, you cant get any on your own.. makes no sense to me.

 

Get a secured card if you can't get anyone to co-sign on a real credit card. They will give you a credit line in the amount that you deposit into an account.

 

i tried but with no credit established i cant get any!


i know it freakin sucks. but it sure helps costs on buying a house!

 

Not that difficult, get a card that you have to put a deposit on, and get a small limit like 500 bucks. You do that for a year and they bump the limit up. By that time you'll have enough credit to get another card, or get a small loan. Do both if you can, after that you should be good. I had 3 credit cards and a small loan(3K) in a 3 year span, after that I had good enough credit to buy my truck with lowest rate possible and no co-signer. After the truck is paid off Ill have a good enough credit score to buy a house.

When you get ready to buy a house its not all about your credit either, its also debt to income ratio, so have credit cards but have the balances low on them, and also be prepared to put a good chunk of change down on the house(20%).

 

Unfortunetly credit builds over time. You have to show responsibility and maturity and no-one at that age can show that to the government/industry. You did hit a key point to where you need to have bills and show that you pay them regularly.
If you do get a quad or something don't pay it off immediately...finance it even if you have the money, just pay the bills until it's paid off. Go to your local bank and ask them for a credit card in person and talk with the guy who issues them and tell him what your trying to do and to set you up with a $200 limit. He should be ok with that. When you get it run it up every month and PAY IT OFF everymonth!
Good luck!

 

my dads been trying to help mine get built over time. I got turned down somewhere for something tho. Told me I had no credit, around a year ago. It was dish network 1.5 years ago.

 

I work in the powersports industry. If you cannot get approved for a home you will not get approved for an atv. Powersports and luxury Items are the hardest items to get financed. Their are factors like debt to income, credit history, length of credit history. Score alone does not determine credit worthyness. Being that you are only 19, it will be an uphill battle to build good credit. Lucky for you thought, houses are some of the easiest items to finance.

 

My wife got a credit card at 18 and bought things and just kept it paid off and had other bills and were always paid on time and by the time she was 19 she got approved for our $60k house weve had for 2 years now