Help Me Please
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You are currently reading a thread in /adv/ - Advice
You are currently reading a thread in /adv/ - Advice
Hey /adv/, I'm 19 and I'd like to start building credit.
What should I do? Tips and don'ts?
pay your bills on time all the time
get a credit card with a very low monthly limit, something that you can manage, ideally in the low hundreds
make small purchases, don't blow your limit on a single purchase. maybe some clothes or little items, nothing you won't reasonably have the money to pay back later
pay the bill when it comes
You apply for a credit card with no annual fee. That's the most critical thing. If for some reason you get turned down by fucking everyone (which these days is nearly impossible) then you can go to your bank and get a secured credit card. But that's almost certainly not necessary.
So you take this no-annual-fee credit card and you charge only the things you would normally buy: gas, food, etc. Basics. How much do you charge? 20% of your credit limit at most. You can get up to 30% without slowing your credit building but I leave you 10% wiggle room for emergencies.
You wait until the monthly statement comes in the mail in order to pay the balance. This is because the credit rating bureaus only get periodic snapshots of your credit usage. If you compulsively keep your balance at zero all month, every snapshot will show zero utilization. This is bad.
You also pay the balance in full. There is absolutely, positively on benefit to carrying a balance over to the next month. All you're doing then is just paying interest for no reason. Fucking retarded. Pay the full balance due and, for heaven's sake, PAY IT ON TIME. That above all else is the single most critical lesson. If you fuck up everything else I wrote, it'll only slow you down. But late payments will actually ruin your credit. NEVER PAY LATE.
That's it. Then just watch your credit score and history grow. You can call every so often and ask them to raise your limit if you feel that your regular expenses can accommodate it.
>>16647515
(Apparently two things are "most critical." Derp. No annual fee isn't critical, it's just smart. You shouldn't pay a bank for the pleasure of making them money. Paying on time, however, is absolutely essential.)
>>16647489
First step is always to start paying somee bills with your name on it. Get your own phone plan, your own internet plan, car insurance, etc.preferably something that doesn't build debt if you miss a payment, but just gets canceled. Then you pay that shit every month on time no matter what. It's more important than your friends, more important than sex. Whatever you hold dear is less important than paying those bills on time every month.
The number of potential friends and girls you can have in the 7 years it takes to rebuild your credit is HUGE. Don't blow off the payment of a bill just to blow your load in something as cheap and easy to come by as a woman. Don't take a vacation when you know there is a bill due that you haven't paid for yet.
Stick with me kid, you're gonna have a ballin FICO score
Thank y'all so much, I really appreciate it. I just want to have a solid foundation for a decent life and escape a cycle of poverty. Good spouse, stable family, all that.
On that note, any budgeting tips? Saving tips? I do have a stable source of income from working and I'd like to build on my financial reputation positively. I don't smoke, don't drink, or party. I don't play vidya, I mostly just focus on school and work.
>>16647583
Plan for everything. Even if you want to buy a fucking coffee mug, put it on hold for a week and buy it then. Patience with delayed gratification is one of the single strongest markers of success among people. Develop the habit of waiting for the things you want, not only to avoid impulse but also to encourage a long-view perspective. If you know that you have to wait for things you'll need to start planning for them early. This adds detail to the big picture and keeps you from getting caught off-guard.
>>16647605
Nice. Would you say discipline is the strongest pillar of success with money? Ngl I am an impulsive person when it comes to clothes or food but lately I've been doing better! I've just realized that I need my life on track right now so I don't get fucked at 25-30.
>>16647489
Go to the bank and take out a small loan--even if it's just $500.
Do not pay ahead on these payments--the little interest will not kill you.
Pic Very Related
>>16647679
Not interested in girls, I'm a female myself.
Thanks for the advice though lol
Get a credit card. Buy visa gift cards using your credit card. Use visa gift cards to pay off your real credit card. Repeat.
>>16647489
Most important thing in saving money is just not buying what you din't need.
Sounds stupid and simple, but it's honestly the greates advice for saving money
