I’m 17 and have no credit score, what do I do?

Question

I’m 17 years and looking to buy my first investment property but I have no credit score. I’m still learning a lot but if I choose to purchase a property, is there a way to do that in my situation? Someone that’s experienced and could guide me in the right direction would be fantastic, thank you.

Doug Smith · Answer

If you have a parent or relative with a credit card, ask to be added as an authorized user...provied they pay their bills and have great credit. You can't be held responsible debt until you hit "the age of majority"...or 18 years old in FL...but that actually will help start your credit file. When you hit 18, try for a small card from a department store...then time will handle the rest. Good luck to you.

Eliott Elias · Answer

Partner with someone who does have a credit score, and money. Your role should be to find the deal.

Luke Nolan · Answer

Hey Noah! That's exciting, good for you! I got involved in property at 18 by finding a friend/mentor who was a real estate developer. We talked all the time and he gave me great advice. Not sure how soon you plan on investing but for me I just kept educating myself and connecting with the people I wanted to become. Sooner or later you'll have opportunities coming your way! If you have no credit score you could look to get partners, this is something a mentor could help with. Also, check out some real estate networking events in Tampa, there's usually a wealth of knowledge there...I might even see you at one!

Michael Haynes · Answer

Hello Noah Ogle in Tampa. First thing is to learn a Profession. What are you good at? Math, Mechanics, English, Computer Programing, fingerpainting, mowing lawns, selling pizza? The two best Professions are Plumbing and Electrician. If you have a Driver's License you can upgrade easy to Class D and drive Box Trucks locally for $20 an hour. The Tow Truck drivers that I meet say that they can make $3000 a week and there is demand. Then, check out Hillsborough Community College site online and look at all the different classes you could take for cheap. I told my brother this stuff and he became an Electrician with the IBEW Electricians Union, 40 years ago. He worked as a Traveling Manager with their truck and tools for 35 years. He studied Commercial Solar Cell installations and is still working as Lead on projects like the Google Campus, Intel, Microsoft, all the California Schools etc. He makes $1000 a day, has a full Retirement with the Golden Health Insurance Plan etc. Line men from Florida that have worked with him have made $500,000 as temporary members with his Union in a year. You need to get a JOB that pays MONEY and forget about a Single Family Home to make Profits. Remember Florida is a Minimum Slave Wage State when you are starting out with a Profession. The days of Low and No Money Down Deals are long gone. I worked on Oil Tankers with the Master's Mates and Pilots Union for 11 years out of the Hall in Tampa. While on the ships I studied Real Estate Investing and learnd how to make Money with Mutual Funds. I saved $100,000 in ten years to buy my Rental Duplexes and Houses, Financed by the Owner to Retire in 1999 and became a Landlord. You need to study with Dave Ramsey and forget about starting out accumulating Debt at the beginning of your life. BP has books on Creative Financing etc. You should watch Grant Cardone's youtube video, "The Worst Investment You'll Ever Make." You need to realize that the Goal is, "Monthly Cash Flow." Did you ever see the movie, "The Gambler" with Mark Walberg? You should try to understand the lesson that John Goodman gave him in the steam bath. "If you can aquire, one paid off home to live in...that is the FU Factor and you can do anything you want."

Joseph Stern · Answer

Hey Noah, owner financing could be a great option for you. Not sure the legality with your age but to be honest almost no sellers who provide owner finance are going to run a credit check on you. The other option would be a co signer for now. Even at 17 you have many options to purchase a property.

Yu Liu · Answer

Have a parent or trusted personnel add you as an authorized user so you have some history when you turn 18.

You can have a parent or partner co-sign. Learn and develop skills now. Find deals for people or just be in the game, do free work. You're 17, all you should be doing is amassing all skills. If you can learn, do.

When you turn 18, immediately get a credit card.

Alecia Loveless · Answer

@Noah Ogle Hi Noah. Once you turn 18 start paying small bills such as your cellphone bill if possible and as the others said get a small credit card account. I started with a little store account that my parents put me on that I was allowed to buy clothes at, obviously within reason, and that started me off on the right foot.

Then when I turned 18 I got  a Citi Bank card with a $500 limit and even though I knew nothing about credit I did know enough to always pay it on time.

Over the years I ran up a terrible amount of credit card debt twice before learning my lesson but I always paid the bills on time so my credit score always remained above a 700.

Today it moves between a 780-825 based on a wide variety of factors mostly due to my real estate debt.

I now know to ALWAYS pay off my credit cards each month. Or at least 90% of them every month depending on if I’ve got a project going on.

Benjamin Sulka · Answer

Noah,

Welcome to BP!

Find a local investor/mentor and learn as much as you can from them. See if there are any ways that you can help them with their investing/properties. People are super receptive to helping out young people. I'm 22 and people have been very receptive about helping me get started.

Stay active on Bigger Pockets and network with people. You can learn so much from this site, books, and YouTube.

Get a credit card as soon as you turn 18 (I didn't get one until I was like 20 and I regret it). This should help you start to develop credit history.

At this point in your investing career, you would have to invest with a partner who does have established income history. Most loan programs require 2 years of income history.

Even if you can't invest right away, stay consistent with the education and networking. It's easy to let the fire die when you can't get involved right away.

You got this!

Ray Hage · Answer

100% do what @Doug Smith says. Hopefully your parents/relatives have good credit! It is very easy to become one with most major credit cards/banks.

Regarding investing in a property, you'll most likely need to partner up with someone even when you're 18 and have the legal ability to buy. You'll need a co-signer for a loan since you won't have much credit or employment history. However, you also want to prove to whoever your cosigner will be that you are both trustworthy and able to manage a property/tenants. Do you have any current RE experience? If not, it may be worth looking into an internship

I’m 17 and have no credit score, what do I do?

Most Popular Reply