I’ve been under my parent’s credit since I was a child but now that I’m 20 my credit has kind of capped out around 715-770. What should my next move be? I don’t need any loans, but I’m thinking of applying for a secured card strictly to build my own credit. I’m not a credit expert and would love advice!
20yo with 717 credit. What’s next?
byu/Wild_Yam_5732 inpersonalfinance
Posted by Wild_Yam_5732
5 Comments
Secured card is cool.
Your credit should be good enough to rent an apartment. Do you have anything in particular that you are looking to do with credit in the short term? Or is this a very long term question?
Are your parents’ credit scores also in the 700s?
Way to think ahead. I’d more worry about school and then saving money than your credit score. If you are responsible with money, it will be reflected in due course.
You can probably get a basic unsecured card. Go for that, ask for a limit increase every 3-6 months, and try for a 2nd card after 8-12 months.
Get a student no fee credit card like Discover. Put a small recurring charge on it and pay it in full every month.
Forget about it.
If you don’t need any loans, and therefore credit, your credit rating is as valuable as reddit karma. 715 is probably good enough for an apartment or not bump up your car insurance or whatever.
Next thing you might need credit for is a house. Debt low and income high is what the mortgage company is looking for. So, live within your means, save a few dozen thousand, make enough money, and getting the mortgage will be no problem.
With this attitude, over the next few years, your credit score will creep up on its own.
A secured card would be fine, but you could probably get a decent card without a security deposit given your credit score, assuming you have some independent income. Try pre-qualifying with the big banks and see what they offer you. You should aim for something with no annual fee and at least 1.5% cash back on purchases.
Getting a credit card to continue building your credit score is a good idea. You’re already in good shape though!