Probablemente tenía dieciocho años cuando recibí mi primera tarjeta de crédito.
En realidad, no exactamente. You see, my mom listed me as an authorized signer on hers at the time and gave me a card, noting it was "strictly for emergencies." But it wasn't until I was 21, working my first full time job, and knowing that I needed to start building my credit, that I finally took the plunge as a solo cardholder.
Estas son algunas lecciones que aprendí de ese momento.
I should've started earlier.
Your credit score is made up of a lot of things – a helpful breakdown is on our credit scores page – but a considerable factor is how long you've had your credit history. Now, it might sound great that I had a three year head start with my mom's card, but the fact is, lenders look at authorized signers differently than they do a traditional borrower. That's because an authorized signer isn't technically responsible for paying the card back (sorry, mom), so it's weighted differently on new loan apps.
So, what's a better idea? Empiece temprano. There are a few ways I could've gone about it, and there are a few ways you can, too.
Primero: pruebe con la tarjeta tradicional por su cuenta.
Depending on your income to expenses and how long you've had your job, you may qualify right off the bat. That's not always the case, though, and that's where co-borrowers and secured cards come in.
Have a trusted co-borrower apply with you.
Un coprestatario es una persona con la que puede tener de forma conjunta un préstamo o una tarjeta de crédito y, a diferencia de un signatario autorizado, ambas partes son responsables de cancelar el préstamo. If you're 18 to 20, for example, discuss applying with a parent or guardian as your coborrower. As someone who doesn't have a credit score or credit history, you're unlikely to get approved for your own line of credit without someone on your account to help you qualify. They're hopefully going to help you compare rates and set a responsible limit for your first experience as a cardholder. Bottom line at any age: debe ser alguien en quien usted confía.
The other option is a "share secured" credit card.
With a secured credit card, you agree to hold some of your own money as collateral to the institution, with the credit limit tied to your investment. So, for example, if you agree to lock $500 of your savings into what your institution calls a "hold", then you now have that as a $500 credit line. Básicamente, le da a su institución la tranquilidad de que usted, como nuevo prestatario, tiene adónde recurrir en caso de incumplimiento de sus pagos. The money's still yours, you just can't access it. Luego, después de un año o dos de hacer pagos y generar su historial de crédito, puede calificar para una tarjeta de crédito normal sin garantía.
Spending less is key.
A full third of your credit score is tied to your capacity – that's your limit tied to the balance you put on your card – so it's important not to let your balance get too high. Esto significa que debe usarlo para cosas pequeñas como gasolina y comestibles, y luego cancelar el saldo. Por lo tanto, si bien una nueva PS5 puede resultar atractiva, procure prestar atención a su límite de crédito antes de tomar la decisión de comprarla.
Store cards aren't the best.
We've all been there: you're standing at checkout trying to buy sneakers or something and the cashier says, "Would you like to sign up for a credit card today and save 10%?" Here's some advice: your answer should always be "no".
That's because store credit cards have rates that normally run over 20%, and that's not even counting fees. They're betting that you can't pay the card off right away and then you'll get nickle and dimed to the point that your 10% discount or "bonus cash" doesn't matter.
En cambio, recurra a su institución financiera. You're far more likely to get a better rate, especially if it's a credit union.
Las recompensas son importantes (y debe usarlas)
Most credit cards come with rewards, and it's in your best interest to not only find a card with a good program, but that you actually use the rewards. Oftentimes, you can use rewards for merchandise, cash back, even donations if you're feeling philanthropic. Consulte su programa y busque distintas opciones para obtener la mejor oferta.
If you're thinking about a credit card or wondering how you can build credit or manage debt, reach out and ask. Chances are, if you're reading this, you're already a member, so stop by your local office or give us a call at 800.242.2120.
-Devin M.
