How can a teenager begin to establish a credit history?

Establish a credit history is very important to facilitate approval of cards and loans.

Porém, há quem acredite que essa prática é impossível até a chegada da maioridade, acontecimento que dá início à vida financeira.

However, the truth is that financial habits during adolescence can help build a history, so that when reaching adulthood, access to credit is easier.

For this to happen, it is important to know which practices help build this history, especially for those who have never had access to credit until now.

In today’s post we will see what these practices are, and how they affect the construction of a credit profile.

So, if that’s what you needed, keep reading!

Is it possible to establish a credit history before reaching the age of majority?

One of the biggest challenges for those who reach adulthood is certainly gaining access to credit, as few have a history at that age.

And this is due to the fact that many teenagers do not worry about this issue, as they cannot apply for loans or cards before the minimum age allowed.

But, the truth is that, although you cannot request these services, it is still important to build a good financial profile, through consumption practices and patterns.

This way, when the right time comes, banks will have a history to consult, which facilitates credit analysis and approval.

This way, compared to other teenagers, your profile will be much more attractive to the bank, which will give you easier access to credit.

This, while the others will still have to build a track record to succeed.

But how can a teenager begin to establish a credit history without access to credit?

We’ll see the answer below!

How can a teenager begin to establish a credit history?

Now you know that you don’t have to wait until adulthood to start establishing a credit history.

This is because, already in adolescence, it is possible to adopt some practices that help in building a consumer profile.

And, don’t worry, because they are very simple practices, so you won’t need to do anything extreme or difficult to achieve it.

We will now look at how a teenager can begin to establish a credit history.

Have simple accounts in your name

It is true that it is not allowed to put relevant bills in the name of teenagers, such as card bills, rent, energy bills or anything like that.

However, simple bills such as a cell phone bill and even purchases with an invoice registered in the name can certainly be included.

And, this is an excellent way to establish credit history, as it demonstrates consumption patterns, which helps generate payment predictability.

So, as a teenager, invest in purchases in your name, and become a holder of small consumer accounts.

Invest in paid activities for teenagers

A basic criterion for defining credit history is the existence of paid activity or work.

This is because having a source of income is crucial for defining income, that is, an amount available for spending in the month.

Therefore, investing in paid activities for teenagers or even seasonal work can help you in this mission.

This applies especially to those who already have a bank account, and the amounts received are recorded on the bank statement.

So, if you’re wondering how a teenager can start establishing a credit history, this is a good tip!

Open a bank account to establish a credit history

In the previous tip we already gave an introduction to this topic, but it is still worth reinforcing, as it is very important.

Opening a bank account is the best way to establish a credit history, as it represents the beginning of the relationship with the financial institution.

Thus, each deposit made will be recorded on the statement, as well as each transfer or payment completed.

This will all serve as information for building your history, which takes special account of your consumption patterns and payment habits.

There are many teen accounts available, so check availability with your preferred bank.

Is it allowed to take out loans and have cards as a teenager?

Finally, now that you know how a teenager can begin to establish a credit history, you can finally get started on this task.

However, it is still important to clarify whether it is allowed to take out loans or have cards as a teenager, as this would make things easier.

It is worth mentioning that there are no credit proposals for this age group, as it is not allowed to include the name of teenagers in credit protection bodies, in case of default.

Furthermore, most teenagers do not have a sufficient history to obtain credit.

Therefore, financial institutions do not usually have credit products for this age group.

Therefore, you will have to use other resources to form a history, and thus obtain credit, when you reach adulthood!