Am I serverely hurting my future?

[King Bowls]

I'm currently a 21 year old college student. I have been working at my granddads store since march 2013 (off an on part time and full time) and plan on graduating in probably 2018 (though I will work hard to try to graduate in 2017)

 

Ok, here's the question

 

I graduated from HS in 2012, and my first job was with my granddad in march 2013. Since that time, all of my pay has been in cash. One of my goals is to get an apartment RIGHT AFTER I GRADUATE from college.

 

Will I be able to get an apartment with no credit? I was told I could if I could just put the money down (money is of no concern, I have tens and thousands of dollars)

 

Will I be able to get a job after college with no credit? (I was told employers will recognize that I was in college and couldn't work)

 

Is it critically important I fill out a W-2, have check stubs, and a credit card I pay off on time all the time?

 

In what direction should I head? What do I need to do?

[CarrieT]

Open a credit card (you might have to back it with a cash account).

 

Pay it off every month.

 

You will have credit before you know it.

[King Bowls]

Open a credit card (you might have to back it with a cash account).

 

Pay it off every month.

 

You will have credit before you know it.

 

Does paying a cellphone bill every month establish credit?

[pink_sugar]

Does paying a cellphone bill every month establish credit?

 

No, this sort of bill is not reported on your credit.

 

I was able to get a CC right at 18 with no credit at all, but the limit was fairly small...maybe $1,000. You could always get a secured credit card, which means you put down money for that to be your spending limit. If you have a lot of money in the bank, you can pretty much buy a higher limit.

 

I also got my first apartment at 18 with no credit. Usually that just means you might have to pay a higher deposit to get in, because you're considered a higher liability when renting to a tenant with bad or little credit. However, we didn't have to pay a higher deposit about 7-8 years ago at our first place. Just be prepared in case you might.

 

My suggestion for credit building is to open up one or two CC's with your bank and use them for one or two bills each month and then pay them off in full every month. You should have credit in no time. Good luck!

 

P.S. Most jobs do not check your credit these days unless you're working with finances as a vital part of your position. For example, when you work at a bank, it is very likely they might check. Office assistant position, not so much. In many areas now, employers are actually not allowed to check unless as I mentioned, you will be maintaining the company's finances or something.

 

It's fine if you work under the table to put it on your resume. I know I put this down when working for my dad. It counts as experience and a reference, but they may not be able to "verify it" when looking under your SSN because it was under the table. My suggestion is to either report you were an independent contractor or were an unpaid intern helping with the family business.

Edited June 12, 2015 by pink_sugar

[jen1447]

I wouldn't just straight up say you've been working for cash, as that's illegal and you've broken many tax laws and haven't been 'paying your fair share.'

 

I think it's doubtful you'd get a no-credit/no verifiable income apartment. They aren't interested in how much money you have now, they want to know how much money you'll continue to have in the future via steady income so you can keep paying your rent.

 

Get a baby credit card as suggested above and go from there.

 

Don't offer to rub women's feet outside hair salons bc you might go to jail and that will harm your prospects.

[King Bowls]

No, this sort of bill is not reported on your credit.

 

I was able to get a CC right at 18 with no credit at all, but the limit was fairly small...maybe $1,000. You could always get a secured credit card, which means you put down money for that to be your spending limit. If you have a lot of money in the bank, you can pretty much buy a higher limit.

 

I also got my first apartment at 18 with no credit. Usually that just means you might have to pay a higher deposit to get in, because you're considered a higher liability when renting to a tenant with bad or little credit. However, we didn't have to pay a higher deposit about 7-8 years ago at our first place. Just be prepared in case you might.

 

My suggestion for credit building is to open up one or two CC's with your bank and use them for one or two bills each month and then pay them off in full every month. You should have credit in no time. Good luck!

 

P.S. Most jobs do not check your credit these days unless you're working with finances as a vital part of your position. For example, when you work at a bank, it is very likely they might check. Office assistant position, not so much. In many areas now, employers are actually not allowed to check unless as I mentioned, you will be maintaining the company's finances or something.

 

It's fine if you work under the table to put it on your resume. I know I put this down when working for my dad. It counts as experience and a reference, but they may not be able to "verify it" when looking under your SSN because it was under the table. My suggestion is to either report you were an independent contractor or were an unpaid intern helping with the family business.

 

 

With just a check stub (No W2 filled out) could I possibly get a credit card? I'm going to tell my grandparents either write me a damn check or I'm finding a job else where

[d0nnivain]

You may be jeopardizing your future in that if you are being paid in cash, if your grandfather is not taking out the proper withholdings you are not paying into the social security system. Heaven forbid something happens to you & you are not able to work anymore, without a history of employment you will not be eligible for Social Security Disability or Medicare.

 

 

Do get a student credit card. I'm sure somebody is offering them at the book store on campus.

 

 

Buy a car & pay that loan over time if you don't want a CC

[King Bowls]

I wouldn't just straight up say you've been working for cash, as that's illegal and you've broken many tax laws and haven't been 'paying your fair share.'

 

I think it's doubtful you'd get a no-credit/no verifiable income apartment. They aren't interested in how much money you have now, they want to know how much money you'll continue to have in the future via steady income so you can keep paying your rent.

 

Get a baby credit card as suggested above and go from there.

 

Don't offer to rub women's feet outside hair salons bc you might go to jail and that will harm your prospects.

 

Lol!

 

What if I consigned with my dad, who has excellent credit?

 

So I will need to apply for jobs during my last semester, I want to so bad get an apartment right after college

[King Bowls]

You may be jeopardizing your future in that if you are being paid in cash, if your grandfather is not taking out the proper withholdings you are not paying into the social security system. Heaven forbid something happens to you & you are not able to work anymore, without a history of employment you will not be eligible for Social Security Disability or Medicare.

 

 

Do get a student credit card. I'm sure somebody is offering them at the book store on campus.

 

 

Buy a car & pay that loan over time if you don't want a CC

 

You're definitely right. This all makes me very mad. My grandad is just being cheap. If he can't do withholdings then I'm finding a job somewhere else. It's embarrassing and pathetic. He thinks he's doing me a favor paying me in cash

[d0nnivain]

To some extent he is doing you a favor. Don't get all nasty & act like an ungrateful brat. Talk to him about your concerns & ask that you be put on the normal payroll. Don't start demanding things.

 

 

As for your father, if you don't have credit & he is willing to co-sign you will be fine. My parents had to co-sign my 1st car loan when I graduated from college because I needed a new fuel efficient car to commute to grad school. I was working as waitress & bartender where I had a lot of unreported income so I could afford the car but not on paper.

 

 

You have 1st world problems. There are plenty of solutions.

[CarrieT]

With just a check stub (No W2 filled out) could I possibly get a credit card?

Possibly not, that is why I recommended a card that is backed with a savings account.

 

To establish credit, sometimes you have to put up - say - $300 or $500 in an account and that is the amount you have to spend on the card.

 

Use it a little; gas, groceries, etc., and pay it off EVERY MONTH. Within six months or so, you can open another card that doesn't require a cash guarantee, and so forth.

[pink_sugar]

My first apartment didn't require any proof of income and all credit cards I applied for didn't require any proof of income. Actually you can get am apartment with money in the bank and minimal credit. We've done it many times in expensive areas too. You just have to have substantial savings in the bank.