You have a few options for building credit at 19. You may apply for a credit card or a loan in your own name to start. You could also request that your parent add you to one of their credit cards. Whatever route you take, it's best to get started as soon as possible because having a good credit history can benefit you much during the transition to adulthood and help you save money. Let’s explore how to build credit at 19 in detail!
Importance of Building Credit at 19
Young people frequently lack credit experience and may not be aware of all the ways that having good credit may make life simpler. Starting as early as 19 provide you an advantage because the duration of your credit history can be significant to creditors and is taken into account when determining credit scores. Here are some of the additional benefits of starting credit at early stage:
- Ease in Getting Loan: When you're applying for loans and credit cards, your credit history and scores matter. If your credit is good, getting authorised will probably be simpler and you might even get better terms, such a reduced interest rate.
- Ease in Getting Insurance: In some places, the cost of your insurance may be influenced by your credit history. Additionally, having good credit might result in lower monthly premiums. Even though you could currently still be covered by your family's auto insurance coverage, this won't always be the case.
- Ease in Finding a New Job: When choosing whether to offer you a position, certain employers may take your credit into account.
- Ease in Refinancing Your Loans: If you have strong credit and a reliable job, you might be eligible to refinance private student loans at a cheaper interest rate.
Is It Possible to Build Credit at 19?
Definitely, you can build credit at 19, since 18 is the legal minimum age to get a credit card, this is also the minimum age to create a credit score. On the other hand, being an authorized user of someone else's credit card allows kids(less than 18 years) to begin establishing credit before they reach that age. 19 is the perfect age to start your credit journey.
What Are the Best Way to Build Credit at 19?
Creditors must report information about your bill-paying activity to the three main credit bureaus, Experian, Equifax, and TransUnion, in order for you to establish credit in any of the several methods available. If you don't already have credit, here are several ways of how to start building credit at 19:
1. Become an Authorized User
One of the best ways to build credit at 19 is becoming an authorized user on a family member's or friend's credit card is among the quickest and simplest ways to establish credit. You can build your own credit history by using the credit of the primary account holder as an authorized user. Additionally, authorized users have no liability, making this a low-risk method of establishing credit. Additionally, as an approved user, you can even receive certain exclusive benefits like access to an airport lounge.
However, be sure your family member or friend has solid credit and uses their credit card responsibly before you sign up as an authorised user. Being an authorised user on an account with a history of debt or late payments is not something you want to do.
Make sure you behave responsibly yourself as well. To prevent running up debt on someone else's card, you should develop a clear plan for how you'll pay off any purchases you make with the card.
2. Apply For Secured Credit Card
Another best way to build credit at 19, if you have no credit, secured credit cards are an excellent way to establish it. If your credit history is bad or nonexistent, you'll normally have an easier time getting approved for these cards. And as long as you behave responsibly with credit, you may use a secured card just like a regular (also known as unsecured) credit card to help you build good credit.
With a secured card, you get a credit limit, can pay interest, and maybe even earn incentives, just like with an unsecured card. The key distinction is that a security deposit is necessary to obtain a line of credit. Your credit limit is frequently determined by the amount you deposit, which normally starts at $200 (but it can be as low as $49). In other words, if you put down $200 as a security deposit, you'll get a $200 credit limit.
One of the best-secured cards is Zolve Azpire Secured Credit Card, which has no annual fee and rewards cardholders with cash back, no minimum required deposit and no additional fees for purchases made outside of the United States.
3. Earn Points For Promptly Paying Your Phone And Electricity Bills Each Month
There are numerous choices if you want to begin developing credit without a credit card. Many financial institutions provide resources for establishing credit, but they could charge a monthly fee.
With this programme, you can receive credit for promptly paying your monthly utility, cell phone, and streaming service bills, which could raise your credit scores. At the moment, qualifying streaming services include Netflix®, HBO®, Hulu®, Disney+®, and Starz.
Just link the bank account(s) you use to pay your phone and utility bills, double-check the information, and indicate that you want it posted to your Experian credit file. You'll receive a free copy of your credit report along with an instantaneous update to your FICO® Score.
4. Pay Off Student Loans Immediately
Your lender(s) would typically record your accounts and payments to the credit bureaus if you used student loans to pay for college. As long as you make your payments on time each month once you do start paying them back, student loans can help you build credit even if you put off making payments until after you graduate.
How Long Does it Take to Build Credit at 19?
There is no set timeframe for building credit because every person's credit path is different. Two to six months of credit activity are typically needed for the primary credit scoring models to produce a credit score. To truly get a decent credit score, though, it can take a little longer if you're just getting started.
Now, you know how to build credit at 19, find a financial institution that would provide you a loan or credit line despite your spotty credit history is only one part of developing credit, though. Additionally, good credit management is important. Take the time to study the fundamentals of credit building if you're just getting started with credit cards. If you don't know how to use a credit card correctly, it won't get you very far. Opt for Zolve Azpire Credit Builder Card which will easily help you to build good credit score. A good credit score is ultimately the result of using credit responsibly, which includes keeping your balance low and making at least the minimum payment on time.
Frequently Asked Questions(FAQs)
Can a 19-year-old obtain a credit card?
Yes, The law is that you must be at least 18 years old to apply for a credit card. Even if you have an add-on credit card, the age requirement must be met. Anyone fitting this description qualifies for a credit card.
How to establish credit at 19?
Here are the easiest ways to build credit at 19 that you should consider obtaining if you have no credit history:
- Become an authorized user.
- Apply for a secured credit card.
- Get credit for paying monthly utility and cell phone bills on time.
How to get good credit at 19?
Here is a couple of ways to build credit at 19:
- Always make loan payments on time.
- Avoid approaching your credit limit.
- Long credit history is beneficial to your score.
- Apply only for credit you actually need.
- Check the details on your credit reports.
At the age of 19, how much credit do you have?
The truth is that none of us have any credit history at all. Our primary credit reports, on which our credit scores are based, aren't even generated until we've had credit (such as a credit card or loan) in our names for at least six months.
How can credit be quickly built?
Sadly, there are no easy strategies to improve credit. The amount of good information needed to offset your current poor or scant credit history will determine how quickly your credit score can rise. You should pay your payments on time keeping your credit utilization ratio minimum to build credit fast at 19.
