I have no credit cards and no loans at the moment, part time working a close to minimum paying job, and wanting to start working on my credit. Any recommendations on how I can start? I'm not well educated on how it works, so information on that would be nice as well.
1. Credit scores are daunting! Totally okay to head scratch with no idea of how to start.
2. One simple step is outlined in this NerdWallet article:
https://www.nerdwallet.com/blog/credit-cards/secured-credit-cards-vs-unsecured-difference/
Specifically from the article, "A secured credit card is backed by a cash deposit you make when you open the account. The deposit is usually equal to your credit limit, so if you deposit $200, you’ll have a $200 limit... Once the initial deposit is paid, secured cards work just like unsecured ones:
Now, I'm not sure what the minimum balance you can place on a card, and I'm cognizant of money being tight (been there - seriously, nothing is forever beyond, well, that one thing!)... but if $50 is all you've got, and you can place it on a card, start there. It's a good way to begin slowly establishing a credit score.
Remember Rome, and a great credit score, weren't built overnight... but they were both ultimately built. You can do it!
Ah, @JBJ , my heart! Nerdwallet? 🙂 I'm kidding... kinda.
@Ana427 - JBJ is right on IMO
We have a great article on Secured Cards on the Mint blog as well if you're looking to do more research on it! https://blog.mint.com/credit/rebuilding-your-credit-score-a-guide-to-secured-credit-cards/
1. Credit scores are daunting! Totally okay to head scratch with no idea of how to start.
2. One simple step is outlined in this NerdWallet article:
https://www.nerdwallet.com/blog/credit-cards/secured-credit-cards-vs-unsecured-difference/
Specifically from the article, "A secured credit card is backed by a cash deposit you make when you open the account. The deposit is usually equal to your credit limit, so if you deposit $200, you’ll have a $200 limit... Once the initial deposit is paid, secured cards work just like unsecured ones:
Now, I'm not sure what the minimum balance you can place on a card, and I'm cognizant of money being tight (been there - seriously, nothing is forever beyond, well, that one thing!)... but if $50 is all you've got, and you can place it on a card, start there. It's a good way to begin slowly establishing a credit score.
Remember Rome, and a great credit score, weren't built overnight... but they were both ultimately built. You can do it!
Ah, @JBJ , my heart! Nerdwallet? 🙂 I'm kidding... kinda.
@Ana427 - JBJ is right on IMO
We have a great article on Secured Cards on the Mint blog as well if you're looking to do more research on it! https://blog.mint.com/credit/rebuilding-your-credit-score-a-guide-to-secured-credit-cards/