[Cupcake01]

Okay, bear with me. I have a lot of questions about this :)

1. If I apply for my first credit card, does this now classify me as having a 'perfect' credit score?
2. I have a job, but hypothetically speaking, what if I didn't have a job, would I be able to use my credit in the meantime and buy things such as an apartment?
3. I ask all of this because I'm thinking about getting my own place when I turn 18 in a few months. I know living generally cost about 1500 a month for a person as far as electric, water, mortgage/rent, etc. So I'll have my expenses covered for the first few months from my savings, but after that I may depend on a credit card. Is this smart. Can I just put all the payments on the credit card to begin with and then gradually pay it off? Say I want a new car around the same time?
I know being young definitely has a toll on how this credit thing works so could you guys help me? Thanks a bunch!

[JammerT]

1. NO! You have to build credit.
2. Most likely not. Unless you strike oil. When you don't have any credit and you open a credit card, they don't just give you an infinite amount of credit. You get approved for a small amount, usually around $2,000-3,000.
3. I would NOT advise this. If you plan on moving out when you are 18 and you cannot afford it, I would not do it. You must make sure that you have a good job and can afford your budget. If you did what you plan, you will destroy your credit history. Plus, as I said you would only be approved for $2-3,000 with a (most likely) very high interest rate. Therefore, that would get you a month.

My recommendations: if you want to move out when you are 18 you should plan on going to college, you can get student loans (if your parents have good credit and you do well in school), that can help you afford to live on your own. Keep in mind that you must do well, or you may get expelled or even drop out, in which case you must pay back your loans. My other suggestion is that you avoid getting a credit card until you are financially stable, or it will ruin you when you actually want to start a family or get married, etc.

If you didn't plan on going to college, or don't have the job to support yourself, you might as well ought to live at home. If it's the rules you are unhappy with, negotiate with your parents. Offer to pay a small "rent" and ask them to give you more freedom.

I hope this was helpful. Growing up is hard. Good luck :)

[ballengerb1]

#1. no. #2 no. #3 no. Once you get a card the card has a max limit and that number is calculated to help determine your score, the more cards the higher the limit the higher the score. Most landlords will not accept a credit card for payment on a lease, this costs them fees which they do not like to absorb. Your card will have a limit, small one from what you say so far. If you go through your savings and rely on the credit card there is a low likelihood that you will ever keep up. Buy a new car and the folks will check your credit and see your unpaid balances, not a good sign. I think you need to get your savings up to what you need for at least a years worth of ;living and have a job before you strike out on your own.

[ScottGem]

1) No because you have no history
2) Once credit is granted, they won't close the account if you lose your job. Only if you don't pay
3) NO!! It is not smart to live on credit. This will catch up to you.

Its probably that your first card will have a low limit. If you go over the limit you get charged over limit fees. These fees can mount up. Also you are likely to get a card with a high interest rate, make it more difficult to pay it off.

Credit cards should be used for TWO purposes. First, so you don't have to carry around cash and have the money to pay off what you purchase. Second, for certain big ticket items that you don't have the savings for. But then ONLY if the monthly payments fit into your budget.

[Fr_Chuck]

No you will have to have a longer history to get a higher school, you will have no, or a low score still.

You have to pay the money back that you use, if you have no way to repay, you will get into trouble, You really only use them if you can pay them in full the same month you charge something, or at the most over a few months. If you use it to pay billsyou can't afford, you just can't afford to do it.

If you have no way to pay your own bills, you need not to move on your own yet.

And lets say you use your old car till you can afford another car and then get a better used car.

[Cupcake01]

You're not lying, It certainly is hard! (smh.) but thanks so much for your advice! :)

[Cupcake01]

Thanks everyone for the advice! Very helpful! :)