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NoSoup · 05-22-2003, 06:37 PM

Cheerios:

No, you don't necessarily have to have a credit card to establish credit. The reason I would suggest starting with it is because credit cards are by far most abundant (although pricey) way to establish credit, and also the easiest to qualify for.

Unfortunately, there is no clear-cut answer as to whether or not student loans build your credit. They do report to your bureau, but lenders often look at them differently than they would another type of credit, escpecially if they are in deferment.

In response to "Do you need credit, the answer is not necessarily. However, if you plan on purchasing a house some day, or buying an automobile that you can't afford in cash, the answer is yes.

If your parents are uncomfortable with you have a credit card, try contacting a local Bank or Credit Union to see if they offer secured cards. Basically, a secured card is when you give the lending institution $X, and they give you a credit card with $X limit on it. You will receive a monthly bill just like any other card, and it will report to the bureau the same as well. This is a great (and sometimes the only) way to establish your credit. I am sure that you will find that most institutions will be reluctant to lend any money to anyone that doesn't have any credit out there. After you have established yourself, you can contact the institution to see if you qualify for a normal credit card, and get your money back.

The longer you have credit history, the better your credit will be, so it is best to start as early as possible.

Thanks for posting!

05-22-2003, 06:37 PM	#7 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Cheerios: No, you don't necessarily have to have a credit card to establish credit. The reason I would suggest starting with it is because credit cards are by far most abundant (although pricey) way to establish credit, and also the easiest to qualify for. Unfortunately, there is no clear-cut answer as to whether or not student loans build your credit. They do report to your bureau, but lenders often look at them differently than they would another type of credit, escpecially if they are in deferment. In response to "Do you need credit, the answer is not necessarily. However, if you plan on purchasing a house some day, or buying an automobile that you can't afford in cash, the answer is yes. If your parents are uncomfortable with you have a credit card, try contacting a local Bank or Credit Union to see if they offer secured cards. Basically, a secured card is when you give the lending institution $X, and they give you a credit card with $X limit on it. You will receive a monthly bill just like any other card, and it will report to the bureau the same as well. This is a great (and sometimes the only) way to establish your credit. I am sure that you will find that most institutions will be reluctant to lend any money to anyone that doesn't have any credit out there. After you have established yourself, you can contact the institution to see if you qualify for a normal credit card, and get your money back. The longer you have credit history, the better your credit will be, so it is best to start as early as possible. Thanks for posting! __________________ I have an aura of reliability and good judgement. Just in case you were wondering... Last edited by NoSoup; 05-26-2003 at 12:49 PM..