Help with investments/credit score

[u/Impressive_Thanks420]

Hey everyone, I’m looking for some advice on a few financial decisions I’m trying to figure out. I graduated college recently and moved to a new state for a job, and I’ve been living here for about 8 months now. Here’s my situation:

1) I don’t have a credit card yet (I know, not ideal) and I’m not sure how to improve my credit score. Last time I checked, it was around 600.

2) Right after college, I made a pretty big financial mistake by buying a brand-new $40k car with a $5k down payment. My living expenses are a bit high: I’m paying $2k/month for rent and $620/month for the car. Other than that, I’m just covering basic expenses like groceries and personal care. 3) After 8 months of working, I have about $15k in savings. I’m 21, but I haven’t invested in a 401k yet. The reason is that I’m not planning to stay at this company for more than a few years, and if I leave before the 3-year mark, I won’t be able to take full advantage of the 401k benefits.

Here’s what I need help with:

1) Improving my credit score: I have no idea where to start, so any tips would be really helpful.

2) What should I invest my savings in? I’m thinking about putting the money into property or some other assets, but I don’t have much experience in investing. I’d love to hear what you think would be the best option. 3) Is buying a house in Utah a good idea? I don’t think I have enough saved for a down payment, but I’m considering it. I’m planning on moving to Colorado soon, so I’m wondering if it even makes sense to buy a home here or if I should look into other options.

Any advice would be greatly appreciated. Thanks in advance!

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[u/TalvRW]

1) Improving your credit score is simple but can take a long time. It's like trust with someone you are getting to know. If you show up on time and do the things you say you are gonna do your trust is going to go up as time goes on. Credit is the same way. t's done by paying off your debts always on time and as agreed. You have a car loan. Make sure the payment is automatic so you never miss a payment. A credit card is generally considered the best way to build credit but credit cards can be dangerous if you aren't disciplined. By disciplined I mean you have to pay the statement balance off in full by the due date every month. If you can't do that don't get a credit card. It can be done automatically though. If you do it you won't pay interest.

2) It's hard to tell you what to invest in. Follow the flowchart for this sub and it will give you a good start. Make sure you have the basics like an emergency fund setup and then go for the best bang for your buck options. Get that 401k match. Then look at tax advantaged accounts like the Roth IRA. You mention not being able to take advantage of the full 401k benefits. Partial vesting is still better than nothing and the future isn't set. You may end up staying longer than you think. What happens if the job market drys up and you can't find anything new.

3) I can't tell you if buying a house in Utah is a good idea. I will say the longer you plan to stay somewhere the more it makes sense in general to buy a house. Buying a house has costs associated with it. It also has benefits. But those benefits such as built up equity take time to show up. If you are planning on moving soon and don't even have enough for a down payment I would probably not buy.