I got into a little credit trouble when I was 20. Nothing major, less than $3,000. It took me a while to get it taken care of. I tried for some time to get credit cards and loans and nobody would give me credit. I had to get my first cell phone in my mom's name. 2 years ago I was able to get one in my name and I just got my first credit card in 7 years. How can I build credit? I want to do it right this time and be able to buy a house and a car, or get a small business loan. HELP!!!
2006-06-15 14:41:04 · 9 answers · asked by crimsonwillow 2 in Business & Finance ➔ Credit
You absolutely MUST pay it on time every month...and NOT max it out. You should try to auto-pay it out of your checking account, or through your bank, online bill pay.
Don't apply for a bunch of credit cards now that you have one...pay this one on time for a while, and then ask them to up your limit. The more applications on your report, the lower your score.
The point about not maxing it out is also very important. If you get too close to your limit, it brings your score down. Try to pay it almost off...but not all the way. The credit card companies like it when you keep a very small balance. It's a racket, but you have to play it their way. Good luck!
Use this motto..."if I can't afford to pay cash for it, then I really can't afford it." This will hopefully keep you from running up a credit balance.
Everyone in the U.S. can check their credit score for free once every 12 months...I would recommend you spend the money though, and get your credit score too.
https://www.annualcreditreport.com
2006-06-15 14:50:16 · answer #1 · answered by firebetty74 3 · 9⤊ 1⤋
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RE :How does a person get good credit?
I got into a little credit trouble when I was 20. Nothing major, less than $3,000. It took me a while to get it taken care of. I tried for some time to get credit cards and loans and nobody would give me credit. I had to get my first cell phone in my mom's name. 2 years ago I was able to get one in my name and I just got my first credit card in 7 years. How can I build credit? I want to do it right this time and be able to buy a house and a car, or get a small business loan. HELP!!!
Follow 8 answers
2016-10-05 18:40:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
1. do not apply for more than 2 credit cards per year ( More than that negates your credit hisory
2. control debt/inciome ratio between 25% to 35%
3. pay your bills on time
4 try to pay more than the min required for credit card bills. (Your min payment is usually between 1-2% of the outstanding amount)
5. do not have more than 60% of available credit on credit card.
A bad credit with a bill stays on record for 7 years before it is deleted forever.
Do this for 6-12 months, all falls into place. :)
2006-06-15 14:54:04 · answer #3 · answered by Halo 5 · 0⤊ 0⤋
And do not make too many inquires on your report. That hurt your credit rating. If you get a cc for say $300. Charge something between $10 -$25 a month, then the following pay it off (don't charge $300 then pay it off, by then you've basically max out your card and this hurts your score). Charge small charges that you know you can absolutely pay off. Do this for about 6 months and you will see a difference. And pay them ON TIME!!!!
2006-06-15 19:35:55 · answer #4 · answered by Curiousty27 2 · 0⤊ 0⤋
Start with your bank. Then apply online, then department clothing stores. If you don't get any response then you need to, start a savings account and build it up to lets say $5,000.00 dollars. Then loan against it. Take that money and open another account, while paying off the first one. Do this over and over again. This will create a bunch of banks you will have credit at. Increase the amount you save to 10-15K and do it all over again creating a huge credit portfolio.
2006-06-15 14:47:45 · answer #5 · answered by mikey 4 · 0⤊ 0⤋
To get good credit, the best thing is to carry some form of debt for a period of time to show that you can make regular payments!
2006-06-15 14:45:04 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Make small purchases and make payments on time if you don't use your cards your not really building credit but if you go crazy you'll end up in trouble. the most important thing is to make payments on time. I boosted my score a bunch that way.
2006-06-15 14:46:18 · answer #7 · answered by EMT dude 2 · 0⤊ 0⤋
Always pay your bills on time and try to pay more than the premium.
2006-06-15 14:44:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
How does a person get good credit?
T.R.Y
T.H.I.S.
S.I.T.E
W.H.E.R.E
Y.O.U
C.A.N
F.I.N.D
T.H.E
B.E.S.T
S.O.L.U.T.I.O.N
F.O.R
Y.O.U
2015-01-05 04:52:20 · answer #9 · answered by ? 1 · 0⤊ 0⤋