How can I build my credit ? Ive never had a credit card before...?

Question

Im gonna need it , sooner or later , What do I do ?

Answer 1

Get a secured card with let's say bank of america. You put a set amount of money into the account and that is your credit limit. After 1 year of on time payments you should qualify for a credit limit increase and the card will no longer be secured and you will receive your deposit back. After that point YOU SHOULD qualify for department store cards and most main credit cards. AMEX, VISA could possibly be harder to get. You need around 14-18 months credit history for those cards. MasterCard should be no problem. Your FICO score should be high enough. Auto loans = 18 months to 24 months. Credit Cards = 12-18 months depending on income. Income will determine your credit limit. Aim for 2 years of credit history to be taken seriously. Research AU (Authorized Users) this is the only trick to get credit history fast. Also think about SECURED LOANS, they establish CREDIT FAST, because they are installment accounts and you need to basically "diversify your portfolio". You need 1-3 credit cards with near 0 balances, 1-2 installment accounts and hopefully a mortgage. As a young lendee I also realized that it's hard to get credit if your under 21, over 21 much easier. The older the better. Age discrimination is horrible when it comes to LOANS, but deal with it and stay motivated.

Answer 2

Go to your bank and get a credit card, since you don't have any credit you'll most likely get a credit line of >$500. Use your card every month, and pay off the whole balance every month. If you can't don't owe more than 50% of your limit. The more credit you have available to you, the higher score (less risk). Another great way to build credit is to finance a car, as long as you make all your payments on time. The most important things to build a good credit history is:

1). The amount of credit you have available
2). Payment history (usually your credit gets better after you've had the same credit card for 24 months, with no late payments).
3). Not too many inquiries (don't shop around for credit cards too much).

Do NOT get a store card, that's a trap that too many people fall into, they offer, let's say 10% discount, but then you're stuck with a +20% APR, no good idea. Best place to get a credit card would be from a credit union (if you don't qualify to join one, go to your bank).

There's many other factors, too much to go into such as BK's etc.

Good Luck!

Answer 3

How old are you? If you're young, you'll probably have no trouble applying for a credit card. If you're over 25, you might run into problems, so you should establish your credit elsewhere. Consider getting a department store card. Use it every once in a whlie and pay it on time. In a few months, you will have enough of a credit history for an entry-level credit card.

Sometimes, if you have no credit history, you can get a credit card at a credit union, especially if you have relatives or co-workers who are members and can introduce you.

Another possibility is to get a secured credit card. In about six to 12 months (if you pay the card on time), you should be able to switch to a "real" credit card and get your security deposit back.

Answer 4

well, the best way to start is to GET a credit card. You just need to be very smart about it. Buying little things on credit cards that you know you can pay off right away will help build your credit. It's when people really start borrowing bunches of money by means of credit cards that they start getting the interest piled on and they can't pay it off and ugh it's a big mess.

So, get a credit card (you SHOULD shop around for interest rates and grace periods just in case you will end up needing them) but in terms of just building up credit, buy small things and simply pay them off right away. That's how your credit builds up, by paying your bills on time and not having any bad marks on your report. If you pay late, for instance, or if you apply for things and get rejected for some reason, then your credit will go down.

Answer 5

Apply for something relatively simple like a Sears or Walmart credit card. If you don't have bad credit, you should be able to get one, even if the max balance is low.

Use it frequently, but pay it responsibly. Ask periodically for a limit increase. Eventually, you'll be applying for more noteworthy credit cards, buying cars and hopefully, a home some day.

Good luck

Answer 6

I'll say can you get organize your money wisely each day, weeks, months and years to come? If you do, then just never let it over due or pay of the over due within 2-3 days. keep this up you will be find with any credit card company. happy life.

Answer 7

attempt one issued by your economic company or credit union. you may want to get a secured card or once you've a strong historic previous with your automobile, you would nicely be able to get an unsecured card. stumble on has raised its criteria at present and each and every of the major organizations costs have lengthy gone up.

Answer 8

START OFF WITH SOMETHING SMALL. MAYBE A CELL PHONE ON CONTRACT. SOMETHING YOU ACTUALLY HAVE TO MAKE PAYMENTS ON. CARS ARE GOOD INVESTMENTS. EVEN BAD CREDIT IS BETTER THAN NO CREDIT AT ALL. IN THE FUTURE YOU WILL NEED YOUR CREDIT TO GET A HOME AND IT IS WISE TO START EARLY. I MESSED UP MY CREDIT WHEN I WAS YOUNGER BUT I DO OWN A HOME , AND OTHER THINGS I HAD TO FINANCE AND PURCHASE ALONG THE WAY. EMAIL ME [e-mail]