If there is something young people should know about before they get started on being out on their own after they become legal adults, it should be the importance of their credit score. Many young folks might not know just how important this number can be to their lives, and it can affect a lot of what you try to do in life. For example, having a good credit score can often mean the difference between being approved for a rental home, can help you get financing on a new vehicle, and can help you achieve lines of credit.
One of the biggest worries a young person might face is the fact that it can seem difficult if you are just starting out with no knowledge of how credit works. Furthermore, as a young person who is just beginning to start out in their adult life, they will also be starting off as a fresh slate—no credit score to work with, so the best place it can go is up!
There are plenty of ways a young person can begin working on building their credit. We will explore some of these, as well as show you how you can access money you need when you need it, whether you attempt to get a loan, a credit card, or even with online payday loans no credit check options through instant loans no credit check loan lenders, you should know that you aren’t automatically out of solutions just because you don’t have a credit history yet.
Which Options Will Help Build My Credit?
There are a few options out there that will be good for helping you get money when you need it, but what if you are wanting this to help you build your credit up? The key thing you should be checking on here is whether or not the options you are considering will report to the big three credit bureaus (TransUnion, Experian, Equifax). If you get a loan or a credit card and the issuer doesn’t report your on-time payments, those successful payments will do nothing to help you with your credit score.
If you really want to drill down and focus on achieving the best credit score you possibly can right from the get-go, simply pay attention and look out for options that look like they may report to the credit bureaus. This way, you can be sure that all of your on-time payments are going to go towards helping you out.
Here are some of the best options you will have if you would like to make sure you are working towards doing something positive for your credit score.
- Get on your own cell phone plan
You likely already have a cell phone, so why not use it to help you with your credit score? If you’re on your parents’ cell plan, switching to one under your name and making your phone payments on time will be a good way to help you begin to establish your credit, as all major mobile companies report to the credit bureaus.
- Try to open a credit card with a low spending limit
There are student credit cards meant for young people to help them build their credit. These cards have very low spending limits (usually a few hundred dollars) and successfully paying them of will be another great way for you to work on building up your credit.
- Consider payday loans if you need money now
If you need a few hundred dollars and can’t find another way to get your hands on it, consider taking out a payday loan for a small amount. This could help you in two ways. First, you’ll get the money you need, and second, paying it off on time will give you a hand with your credit score, as a good majority of online payday lenders also report to the credit bureaus.
Weigh Your Options to See What’s Best for You It can seem difficult just starting out as a young person in these modern times. You need credit to do just about anything major in your life, like renting homes, buying cars, and more. Why not get a jump start on life after high school and begin working on something that could help you in big ways later on down the line? Building up your credit now will go a very long way towards setting you up for success in the future, so don’t discount the importance of having a great credit score, no matter how young you are.