If you are looking for a way to establish credit and you are a young adult, there are a few different ways you can pave the way. Establishing credit at a young age can be hard, but you can create a high credit score and make things easier later on in life.
If you are currently living at home with your parents or you are on your parents policies for multiple different things, it may be time to get out on your own. Here are a few different things to consider.
Get Your Own Phone Contract
Are you currently on a family plan or are your parents paying your monthly phone bill? If so, ask if you can have it put in your name. You can help make the payments or let your parents still pay, but it's an easy way to accumulate credit. You know you need a phone, and you can start with a pay as you go plan.
Apply for a Student Credit Card
There are many credit cards with low interest rates and low limits directly aimed towards students. Get the credit card and use it responsibly. You can have your cell phone payment automatically billed for your phone, so it's never late. Then pay your bill on time and improve your credit in two different ways.
Get Your Own Auto Coverage
Are you still on your parent's insurance bill because you weren't old enough to get your own? Call around and get auto insurance quotes from companies like Harris Insurance Services to find the best deal, and find a plan that you can afford. You can find companies that let you pay month to month if you need to. Your parents will save money and you will get the coverage that you need. If you are leaving your vehicle at home to go to college, you can get a great resident discount as well.
It can be hard to get approved for any credit when you have no credit history or bad credit. Try to do these things on your own to start creating a great credit history, or ask your parents if they would be willing to cosign and get you started with your goals. Not only are you going to improve your credit, but you're going to learn to be responsible financially. Find out what other ways you can improve your finances and start working on your financial future.