At the young age of 18, you might not have a credit history in place. The reasons might be that you have not taken charge of your finances and are financially inactive. Whatever may be the case, you can initiate the credit-building process at any age.
Since you have now attained 18 years of age, you must pay serious attention to handling finances. Even though you depend on pocket money, start growing your financial knowledge. The biggest perk of becoming mindful about money from this age is that you can learn and unlearn a lot of things about money.
Having doubts and hesitations about finances will be common, as you will know very little about it. For example, you might wonder if getting financial assistance at your age is doable or not. Surprisingly, with options like same-day loans for an unemployed, you can do it.
These loans do not have any employment obligation also. Therefore, they are a very convenient option as you are 18 already. Likewise, you might have a query concerning your credit history, which is not yet discovered.
Fret not! This blog can guide you with some handy tips to build a credit history from scratch. Keep reading!
Tips for an early start in the credit-building process
Young people have a lot less financial pressure over their heads. They can soundly focus on the nitty-gritty aspects related to the credit history creation process. Moreover, with an early start, they can get enough time to dedicate to this process.
Head over to the tips without wasting a single moment.
Check if you are a registered voter
Getting yourself registered for the electoral roll lays the foundation for the credit-building process. It is because this information concerning your identity should be there in your credit report. The meaning of this information missing can be trigger reliability issues.
Apply for credit if you have not started yet
A great way to start would be by applying for any credit options. You can opt for credit cards or other financing options like loans for 18 years old with no credit history. As you can see, you can obtain these loans with zero credit scores.
Therefore, you will not face any difficulty in getting approval, as there is no requirement for credit scores. On top of this, you are getting an opportunity to develop your credit history by repaying loan debts on time.
You can even look for credit builder credit cards. Consider having them if rates are manageable for you. On-time payments reflecting on your credit report will give an instant boost to your credit history.
Become a tenant
Landlords these days prefer to have a look at the credit profile before giving a room on rent. As a student, you can talk to them and convince them by agreeing to pay a comparatively larger deposit.
The rent agreement would be an essential document. Besides, do not forget to get a receipt of the rent payment from the landlord. It would be helpful in demonstrating stable financial condition.
Buy a service plan for your mobile phone
The meaning of getting a separate mobile phone plan for you is stepping towards building credit. You will have to pay for the plan, and this utility bill can work in favour of creating a credit history.
Moreover, you will have to keep up paying for the chosen plan. Eventually, your credit history will start growing with on-time payments.
Accept a new job offer
Your previous must have accounted for a stable financial condition. With a steady salary, you must be paying off your bills on time. Your financial behaviour will reflect on your credit history.
Therefore, having a job is very much helpful in building your credit scores. Switching jobs will also be easy as your past financial reputation is quite convincing.
Refrain from changing address as a student
Are you living alone and away from your parents? In that case, you must be residing in a rented house. Prevent yourself from switching home addresses now and then.
It will obstruct the credit-building process, as your address will not be a fixed one. Your credit report might have a different address that does not match your actual address. It will be reported as a dispute in your credit records.
Refinancing your student loans
If you are studying and need loans to support your education, you can do it, as options are available for you. Ask the loan provider to refinance your student loans. As repayment will have a convenient structure, you can make payments on time without any exertion.
Few considerations to keep in mind
Building credit is not a difficult task to achieve if you take care of a few things:
- Not missing payments: If you take out credit and do not pay them back on time, it will affect you negatively. Your credit report will record it as a negative impression.
- Remind yourself about closed accounts: Oftentimes, people forget to clear the outstanding in closed accounts. Ensure you check that your closed accounts have no pending payments. Disburse at once if you find any unpaid dues.
- Apply for a credit card sensibly: One thing you must not forget is that a credit card is also a form of debt. Opt for that small amount that is bearable for you. Otherwise, you will face difficulty in meeting the credit card balance.
The bottom line
You should not think that since you are 18 years old, you do not need a credit history. It has significance in your life also. A good credit stature can invite potential financial opportunities for you.
Above all, getting started at this age will have its own perks. This blog must have been able to give you an insight into the ways you can create credit history despite your young age.
Keep tracking your credit history so that you can maintain the scores. Such mindful behaviour will contribute a lot to developing your sense of financial responsibility.