You need a credit card. Now. And in your own name.
Why? You need to build credit. Did not the last article tell you that the longer you have credit to your name the better your score will be? Just make sure you do not rack up substantial debt and RUIN your credit.
Why now? Because the LONGER you have it… you know why.
The credit card HAS my name on it. But it STILL might not be yours. You must apply for your own credit under your own name and social security number. Just because your name is on the front of the card does not mean it is building credit for you.
The rules changed. Just a few months ago, having your name on a credit card meant you were building credit. No longer. If you are an authorized user on another person’s credit line, you are no longer boosting your own credit score. Some people were selling their good name literally. They were selling authorized accounts to people so those people could get credit. To stop this nonsense the rules changed, and authorized user accounts no longer benefit the authorized user.
I am an authorized user. This is good for you still, however. Since you built some credit in the past as an authorized user, you are not a new risk to credit issuers. By all means apply for a new credit line under your own name. This line may not have a credit limit high enough for you to survive, but fear not! You are still allowed to use your authorized card for most of your purchases.
Strategies. Keep your authorized user card for most purchases. Use your personal card here and there for little things. This way you maximize the difference between available credit and outstanding balance on your card. Use it every month, however, to show that you pay on time and begin to build a trend of doing so.
I have no credit. The good news is that this change in rule does not affect you. The bad news is now it will be much harder for you to begin to build credit. If you are a student go for a student card (more on this in a later article). If you have bad or no credit check out cards targeted for people like you (more on this in a later article). Of course you can still be added as an authorized user for emergencies or to make things work in your living conditions.