How to build credit while you're a teen

If you are a teen and still want to build your credit so that you can get car loans, college loans or just have a great credit history this is a great tip for you or your parents.

Instructions

Difficulty: Moderate

Things You’ll Need:

• A pen
• Social Security #
• Student/ School ID
• A Picture Form of ID

1. Gather the things that you need. Take a pen with you everywhere (this is a great habit to have anyways). Take a social security card with you(or memorize the number).
2. Search online for student credit cards. Google Student Credit Cards. Most of these websites are helpful. There are many cards depending on your need, or to help you get started. There are different kinds of "credit" cards out there for student. Some you can get at any age, and work like a debit card. You have to put cash on them in order to use them. These are the best if you are under the age of 18, and carry very little to no risk and you almost always get accepted when applying. These cards also report to the credit bureaus almost every month rather than every three as most regular credit card companies do.
3. Apply for one card online. Don't worry if you don't get instantly approved. You most likely will not. It will take 10-15 business days for the card to be mailed to you, so that you can activate it if you are accepted or if they need more info. I found it takes 2-3 weeks to get it in the mail.
4. Take the items needed with you and go to your nearest mall shopping center. Most stores offer credit cards here. One thing most store's don't tell you is that they offer student cards. The requirements for these are usually that you have to be 16, have a student ID with you, thats it. You will be accepted on most cases all the time immediately. I know Express stores allow student cards with these terms, you automatically receive a $150 credit limit.
5. Most offer to take a percentage off of a first time purchase with a card at a retail store. Take advantage of that, even if you are buying one item. This will also help build your credit.
6. When you have your card and activate it sign up for credit monitoring service(offered with most cards). This will pay off in the long run and usually offer a chance for lower APR rates on the card in the future.
7. Pay your bill on time and more than the minimum amount required to pay! You don't have to pay it all off the first time, but make it a habit to pay more than the minimum amount. This is what builds your credit.
8. After 5 months, if you have paid your bill on time every billing cycle request a credit limit increase. If you have paid on time, they will most likely grant you this. Do this on the phone if possible because you CAN negotiate.

Tips & Warnings

• Remember this is a process it could take years to achieve a high credit score.
• Keep trying and keep applying.
• Common myth, it doesn't hurt your score to check your own credit score
• It won't hurt that much to apply for cards.
• Don't apply for more than one card at a time until you have heard from the other application.
• Sign up for credit monitoring and protection
• Be careful with your information and who you give it out to.
• Be careful this is your future credit!
• Learn good habits now!