Lot of friends tell me to buy a car and i will have a credit history,others said i should open a bank account and use the bank credit card to make payments and have history,some said i should be going to stores to apply for a credit card.pls help me because i dont want to make a big mistake.
2006-07-14 16:23:55 · 3 answers · asked by Jiggles 1 in Consumer Electronics ➔ Home Theater
All of the methods you indicated in your question are ways to build credit. If you need a car and are looking at one that will not cost a great deal in monthly payments, then you might want to take that route....watch what you buy, ensure it will last as long as the payments, don't buy a car just to do so. If it is needed fine, if not go a different route for credit building.
A store credit card....watch these, interest rates are usually exorbitant and if you end up carrying a balance , that can add up. They have the ability to make you feel as tho you just aren't getting anywhere in knocking the balance down.
Bank credit card is a very good way...you could start out with a low credit limit and then have the bank increase it after 6-12 months when you've proven that you are now a good credit risk.
Buy things on the card that you are able to pay in one shot when the statement arrives. Keep all your receipts and know what you've spent by using the card. If you do this correctly you could soon find yourself with a lot of companies sending you applications for their cards.
Overall, excellent credit takes awhile to build up but once its built you have the opportunity to always have credit almost immediately for things you find you need or simply want.
Another way is to take out a loan at your bank for an RRSP or Mutual Fund....make payments towards it and in the end you have savings to show for it while building your credit responsibly.
How ever you choose it...good luck
2006-07-14 16:37:53 · answer #1 · answered by dustiiart 5 · 0⤊ 0⤋
Buy only things you can pay off by the end of the month. Pay on time. This will build your credit without putting you in debt. Once you begin, You will be bombarded with credit companies wanting to give you their cards. Don't fall in to the trap of spending more than you can pay off by the end of the month.
2006-07-14 16:29:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
don't miss any payments
2006-07-20 19:14:29 · answer #3 · answered by gr8leaf 3 · 0⤊ 0⤋