How to build self-confidence?

How to build credit? ?

• I'm 19, have no credit, and my parents say I don't need it. Hm, I decided I want to build it anyway. I can't get a credit card because I have no credit or cosigner, not even a student card! Also my dad froze my credit so it can't be stolen, so now I either pay to undo that or try finding other ways to build it. How else can I build my credit if I can't get a credit card? I'm 19, make about $300-400/week, and am really curious what I can do to build my credit.dent card! Also my dad froze my credit so it can't be stolen, so now I either pay to undo that or try finding other ways to build it. How else can I build my credit if I can't get a credit card? I'm 19, make about $300-400/week, and am really curious what I can do to build my credit.

• Answer:

  I'm not exactly sure how your father "froze" your credit, unless you had a card for your use under his name/account and he took it back. If you don't already have a checking and savings account, open them (they don't have to be sizeable, just stable, and don't get overdrawn or bounce checks). Find a bank (either now or once you've had an account for a reasonable length of time) that offers a secured credit card option. There are credit card companies that specialize in these, but major banks tend to have better fees, terms and interest rates. You can usually open a secured line for a few hundred dollars, which the bank will require as security against your credit line. As you build your credit history (don't keep your card maxed out, make your payments on time, don't miss payments, keep track of your balance so you'll know if your number has been used fraudulently), you may be given credit line increases, which you can also do by increasing your security deposit, but avoid allowing yourself more credit than you can reasonably assume given your income and other financial responsibilities. Anyone can lose their job due to unforseen circumstances; financially intelligent people don't get into debt that they can't reasonably make payments on for potentially a few months when emergencies occur. In time, and with a secure income, you should be able to apply for an unsecured card, but avoid applying for one unless you know what your credit report and score look like, since being turned down for a credit line can be a ding on your credit history (you can get a free credit report on yourself through any of the major credit reporting agencies--if you don't know who they are, then you should research this as part of being a responsible borrower). Having no credit history is better than having bad credit history, but once you've started down that financial road, don't abuse credit by treating it like money--it's not money, it's debt. And once you've screwed up your credit, it's a long, sucky, expensive road to getting back to the same place you were when you were 19 and didn't have the stress of an impossible and growing financial hole to dig yourself out of with random predatory agencies making your life a little slice of collections hell.