Hi Money Minder,
I’ve been checking out some apartments in my area, and I’ve come across a few that fit my budget. But, there’s a little snag – I don’t have a credit card at all, which means I have no credit score. My mom says she didn’t bother getting one until later in life, so she thinks I don’t need one “yet”.
I have a steady job that brings in around $2000 a month, and I’m sure I could save up enough to cover the basics of moving out. But when it comes to credit and credit scores, I’m totally lost. Where can I get a credit card? How do I start building my credit score? Also, my mom may have used my social security number for some stuff, which makes me a bit uneasy.
Back in high school, a teacher suggested getting a credit card and paying off small amounts to start building credit. But I mentioned it to my mom and she shot the idea down, saying I’d just end up racking up debt. However, I don’t plan on staying at home for ages, so I’m eager to move out now.
Edit: Forgot to mention, I’m thinking of attending community college, so expenses won’t be as hefty as they could be otherwise.
Thanks for any advice you can give!
Response from THE MONEY MINDER:
Hello There,
I understand your concerns about not having a credit card or credit score, especially when looking to move out on your own. It’s definitely a crucial aspect to consider when renting an apartment or taking on any financial responsibilities. First off, it’s important to check your credit report to ensure there are no unauthorized activities since your mom has used your social security number for certain things. You can do this by contacting the three major credit bureaus – Equifax, Experian, and TransUnion.
In terms of building your credit score, there are ways to start without necessarily getting a credit card immediately. One option is to become an authorized user on someone else’s credit card, such as a family member or close friend, who has good credit. This way, their positive payment history can help you establish your own credit.
Another way to build credit is by applying for a secured credit card. These cards require a security deposit as collateral, making it easier to qualify even without a credit history. By using the card responsibly, such as making small purchases and paying off the balance in full each month, you can start building your credit score over time.
As for moving out, it’s great to hear that you have a full-time job and a steady income. Make sure to create a budget outlining your expenses, including rent, utilities, groceries, transportation, and any other necessary costs. Consider saving up an emergency fund equivalent to at least three to six months’ worth of living expenses to ensure you have a financial safety net.
Since you mentioned planning to attend a community college, it’s wise to factor in those expenses as well. Scholarships, grants, or part-time jobs can help cover the costs of tuition and books.
Remember, building credit and moving out on your own will take time and careful planning. Stay informed about your financial situation, seek guidance from trusted sources, and take proactive steps towards achieving your goals. Best of luck as you navigate this exciting chapter in your life!
Farewell from THE MONEY MINDER.
