subject: Beginning Credit-how To Start Beginning Credit With A Student Credit Card [print this page] Applying for multiple credit cards at one time is not the way to build credit when starting fresh. In doing this, you rack up multiple inquires on your credit report, which sends red flags to all potential lenders. As a result, you are denied and those inquires will stay on your credit report for two years. Whether you are trying to build or rebuild credit, you must select one credit building method and pay your bills on time for a year before applying for additional credit. This will show the bank that you have demonstrated that your credit worthiness.
Beginning credit step 1
The first thing you want to do is:You want to get a copy of your credit report for review. Order your credit report using the methods discussed in chapter one. Once you have the credit report, review it for accounts that do not belong to you. If its not clean, then use the dispute methods in chapter two on how to repair your credit report. If there is no incorrect information on your report, its time to build or rebuild credit.
Beginning credit step 2
This method is good for teenagers turning 18 and attending a community or a major university. This is the best time to get credit because banks are more lenient about approving college students. They dont worry about the students since they know that the parents will come to their rescue if they default on the loan. Because banks want to hook you in your early years, they have created two types of cards that are offered to students. The first is the regular card, commonly offered to members of the public. The second is the student card, which is normally advertised on the college campuses and is sometimes
mailed directly to the student. With the student card, the parents are required to cosign and the limit is no more than $1000, as these cards are good for students to practice the use of paying on time. Regular credit cards come with some type of gift, and you have to show proof that you are a student.
Ending, student cards are good if you are 18 or in college with no credit. They help you establish credit and get you ready to handle credit responsibly. In addition, the cards tend to be easy to get approved for because they are designed for students with beginning credit.
