I'm 18 with no credit (a collector has been disputed off) I want to get a personal loan of only a couple hundred but I need it to go towards my credit while I'm paying it back. I also want to take out a secured loan. However I want the lowest interest possible. What would be the best type of product to get for this this?
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Get a credit card, not a loan.
If you borrow a pile of money, you'll have to pay interest on it, and may be tempted to spend it on unnecessary things.
If you use your credit card to cover your regular daily spending and then always pay it off, you'll pay no interest and establish good credit history.
Cloudy
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You're not going to get decent interest on anything, sadly, but fortunately there are options for which the interest rate is nearly immaterial:
Get a low balance credit card.
Many credit card companies will extend you a limited amount of credit (say, $250), for usurious interest rates. Get one. Use it sparingly. Pay it off in full every month. You will never pay a dime of interest on it, so the interest rate they charge doesn't matter.
And most importantly: keep that line of credit open for the remainder of your natural life.
There are lots of factors that go into your credit score, but one of the most important is the age of your credit card accounts. I was fortunate to get a low balance credit card at your age, and I was stupid to close it -- doing so cut the average age of my lines of credit in half and cost me around 200 points on my score.
bvoyelr
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