How do I save and build Credit?

Question

Long story short Im 17 and and really trying to learn everything young so when I turn 18 I can build my credit and budget properly but I also really want to save as much money as I can for investing in real estate. So, how can I save and build credit, if Im going to be minimizing my spending? I plan to save and build credit for 2-3 years.

Bob Okenwa · Answer

@Tyler Brown

Try and get added as an authorized user with someone who has a long and stable credit history and is in good standing with their credit cards. This will help you qualify for better cards once you turn 18. The main thing to building credit is to use it responsibly and pay off the debt every month.

Filipe Pereira · Answer

Hey @Tyler Brown, you can build your credit at that age by getting a secured credit card. It's basically a regular credit card that is backed by money that you put in their bank that they draw from. It's a loan to yourself essentially.

Check out this resource: https://www.nerdwallet.com/bes...Welcome to BP!

Dan Sheeks · Answer

Hey @Tyler Brown

Congrats to you for your ambition! I work with a bunch of young aspiring real estate investors just like you (in a free online group), and I am willing to help you out with some advice or even chat on the phone if you wish. But I first recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/

Tyler Brown · Answer

@Scott Mac I already read that book :)

Teri Feeney Styers · Answer

@Tyler Brown save dollars now. When you turn 18 you can have your own bank accounts. Open at least a savings account. You should also talk to your banker about a "secured" credit card (maybe with a $500 limit) AND a CD loan. Both require that you have money in the bank. The CD loan is cool - you invest in a CD and then you borrow against it. This is how my oldest son got his first credit. He put $1000 in a CD and then borrowed $1000 using it as collateral. He made his monthly payments and built credit as a result. Meanwhile, the CD was earning interest.

Scott Mac · Answer

Hi Tyler,

Read Rich Dad Poor Dad, and get a stable job making as money as you can.

Good Luck!

Marlen Weber · Answer

As advised below, a secured credit card will help build credit as you manage your finances. Keep up the ambition and drive. It is amazing that you are starting to save at 17. @Tyler Brown

Sandy Gabin · Answer

Hi Tyler!

I wish that my 17 year old daughter would think like you! So happy for you because you are already thinking about preparing for your future! Keep on reading, learning and exploring Bigger Pockets! Welcome!

How do I save and build Credit?

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