What is “credit” ? ? ?
Question by : What is “credit” ? ? ?
I’m 18 with a full time job and want get a home loan to buy a home someday. My friends tell me I need to have “credit” to get a home loan.
What is “credit”? How do I build “credit”? What things make “credit” good or bad?
Best answer:
Answer by Huntsman
Steps to get credit since new regulations are making it nearly impsossible to get a credit card if you are under 21:
- Make sure you have had full time employment for 1 year
- Get a checking account and have a savings with about 5 months of income
Once you get these going, apply for a Discover card (you might get it)
If you get it, charge something small you need each month like food or gas, and pay in full when you get the bill in the mail.
Never dare pay just the minimum. Pay for all you bought.
If you can’t get it, then, get a secured card.
Again, same rules – replace the money in full each month
Google your bank and see what their secure card has to offer
Do not co-mingle your finances with your parents.
IF by now, you don’t know what credit is, something tells me that your parents are not that good with credit – don’t mix with their credit
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