How to Start Credit at 18 Years Old

At 18, you can apply for a credit card and other types of financing in your name. Acquiring credit is key to building a credit history. Numerous options are available for establishing credit.

• 1

  Apply for a retail or gas card. Complete an online application or an in-store retail credit application to see whether you can obtain a credit card. Gas and retail credit cards are easier to get than bank cards when you have no credit history.

• 2

  Apply for a secured major credit card. These are credit cards backed by a cash deposit. Seek information about secured credit cards from your bank. Find out how much you need to put down for your security deposit and other fees associated with the credit card. Also, make sure the bank reports secured credit card accounts to the major credit bureaus.

• 3

  Ask your parents to co-sign a credit card application for you or ask them to co-sign a small auto loan to help you establish a credit history.

• 4

  Pay your bills on time to increase your score. It takes time to build a good credit score. Do not miss payments, and contact creditors beforehand if you think you may not be able to pay your bill. Make special arrangements or ask for a skip payment option to prevent a late fee and negative marks on your credit report.

• 5

  Determine a monthly spending budget for your credit cards and do not go over this limit. Pay off charges in full each month so you don't build up debt.