I often get asked the question - What Can a High School Kid Do To Establish Credit? I want to explore some options, and am thankful for the opportunity to guest post today.

You are only 16 years old. You don’t need to worry about having good credit. Right? Wrong. Now is the perfect time to start thinking about establishing good credit. If you want good credit for the rest of your life, you need to start now. Make sure you make good decisions and are careful about how you spend your money. Follow these simple steps and you’ll be on your way to great credit.

1. Get a job. I know, I know…You need to focus on getting good grades, not making a million dollars. While that is true, no one is expecting you to work full-time right now. Many employers actually look for high school kids to work part-time. You can be a great asset to someone’s business; you just need to find the right one. Start off only working a few hours a week. This will get you used to having a job and also being in school. Be careful not to work so much that you can’t get those straight A’s anymore. Good credit starts with having a strong work history. The longer you have a job, the better your credit will be.

2. Get an account. You’ll need somewhere to put all that extra money. You aren’t going to cash your check every payday and stash the money under your bed, right? Probably not. Get a savings account, and a checking account too, if you can. You may need to ask your parents to be on the account too with you for a while. Talk to your bank or credit union to see what you qualify for on your own. These accounts will prove that you are responsible with your money, even at such a young age.

3. Ask your parents. If your parents have good credit, ask them to add you to their credit card as an authorized user. This is a great way to piggyback on your parents credit and credit card (while you build your own) and show everyone how responsible you are. It will work out great for your parents too. You’ll be able to pick up a gallon of milk for your mom, without having to make her get out of the car (or even leave your home)!

4. Auto loan. If you can afford it, try to get a small car loan. You may need your parents to co-sign with you. Make sure they know how responsible you will be by making the payments on time. Remember you are still in high school, so you won’t need anything too fancy or expensive. Talk to your parents and your bank/creidt union and see how much you can afford.

There are several things you can do while still in high school to build good credit. The earlier you start thinking about having good credit, the more beneficial it will be to your credit history. You’ll also get in the habit of making responsible decisions. You’ll be well on your way to having great credit in no time.

Jason Skinrood is the owner of Plastic Rewards and our guest blogger today!

This entry was posted on Wednesday, August 13th, 2008 at 10:07 am and is filed under Build Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.