Anonymous asked in Business & FinanceCredit · 1 month ago

Financial advice?

I’m 19 and I have 4k saved up. I don’t know if that’s much but I want to make it work. I start college in January and I still need to buy a car so hopefully that doesn’t take it all.

I want to start building credit. I have no credit and deciding between self lender to help me and a secured credit card, Maybe with capital one. 

No one is able to help me since everyone older then me in my family is bad with money. Thanks in advance!

9 Answers

  • GA41
    Lv 7
    1 month ago
    Favorite Answer

    If you want to build credit, a good way to start is with a credit card.  Be sure to pay it off each month, otherwise, overspending on a credit card can get you into financial trouble.  Also, if you buy a car on credit, be sure to pay your loan premium each month on time.

    When you buy your car, get reliable transportation.  Do not get a fancy new car, because you'll pay a premium for having a fancy new car.  Get a reliable used car.  What you need is reliable transportation.

    Realistically, buying a car and starting college will use up your $4,000.  I would work part time in college.  Try to avoid school loans.  If you must take out a school loan, keep your borrowing down to a minimum.  Don't borrow a  a lot of money simply because its available.  Being saddled with debt is a bad way to start your financial future.

    If you are going to build wealth, you'll have to keep your spending to a minimum and try to save money.  Instead of buying consumable goods like digital games, and going out to eat, and beer, buy assets with your savings such as stocks.  Begin at an early age, because the time value of compounding interest will work in your favor if you begin early.  Read books about investing at a young age.  Many people make the mistake of waiting too late in life to begin building wealth.

    When selecting a college curriculum, research where the jobs are expected to be in 4-6 years after you graduate.  Look at the expected salaried ranges and select the highest paying field that you think you might enjoy.  An engineer may start at twice the salary a teacher, business major or marketing major will start at.  Also, the opportunities for advancement are much higher.  A business major may have to work 15 years to reach the salary of a beginning engineer.  So choose your curriculum wisely.  The  decision will affect the standard of living of your whole family, and whether your wife chooses to work or has to work to make ends meet.  Don't play around in school.  Make the grades to get a good degree.

    When you get out of school, be sure to take advantage of a companies 401K program and begin saving for retirement in your 20's.  Try saving at least 10% of your gross pay.  If you take the savings out before you budget your expenses, you won't get used to living on the higher amount.

  • 4 weeks ago

    That's a good savings I must confess..

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  • 4 weeks ago

    Your $4K should cover a cheap car and insurance for it. It's going to be tough but with this much saved at 19, you've done well so far. Good luck

  • 1 month ago

    If you are going to need a car, then use some of your savings as a down payment and that will get you the car loan, which will build your credit without getting a credit card. Secure cards like the ones Capital One offers are fine--but they build credit very slowly. A car loan will do it faster. 

    You can use half your savings as your car down payment--finance the rest. It's a good down payment; don't go overboard on the car purchase, make all your payments on time, and within a year your score will be pretty good. THEN apply for a non-secured credit card, not a secured one. But don't make the mistake of doing this all at once. Wait out that first year on the car payments. That way you won't take a hit on your score for opening too much credit.  

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  • 1 month ago

    U could just save that money instead of buying a car.u could just save it and borrow someone car for school.

  • 1 month ago

    You don't need credit at 19.  Worry about how you're going to pay for college and a car.  There's plenty of time to worry about credit later.  

  • Anonymous
    1 month ago

    Apparently you are also bad with money too.

    4k is not much, and it's not a little bit either.

    Cars need maintenance, gas, insurance etc. I think you should use the 4k, for your college tuition.

    I have a lot more money than you saved up. I already have a college education. I do have a license, but not a drivers license.

    I think money is better invested in a livable asset(s), and college, or university education too.

  • 1 month ago

    If you try to start when you are 19, then you probably won't be able to build credit.  You have a much better chance if you wait until you are 21.

  • Anonymous
    1 month ago

    Capital One would be your worst mistake.  They are thieves.  Use a credit card from your bank - where you bank.  You aren't going to get a decent car for less than about $5k.  Anything less and it will cost you an annual minimum of $1,000 up to $2,500 in maintenance/repairs.  Start with a secured credit card if you have to.  Work it smart and in 6 months, hopefully, they will give you a real credit card.  Take the bus until you can afford a car.  Registration, insurance, gas, etc. will cost you big time, and if you get a ticket - $500 for example, if you don't pay it with 30 days, you can be jailed until it is paid, unless you choose to be a fugitive and run.  Not something you can do while in college.

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