what is the best way to build up my new credit?

Question

I'm turning 18 soon and i would like to buy a new car since i feel the one i bought when i was 16 is going to die soon. What is the best way to build up my credit so i can get an auto loan? I already have saved around $5000 from a job i have been working at for 16 months but am looking at a car that is around $15000.

Answer 1

It is so great when people take a proactive roll in wanting to establish good credit.

Here are some tips for you:

1. Start with the largest purchase first. Auto financing rules are pretty flexible. Someone will finance the car, especially if you are able to put 1/3 down and have steady employment.

2. Shop for your auto loan before you shop for the car - In other words be pre approved before you get to the auto dealer. your bank is the best place to start. They have seen you saving money and you have built a relationship with them. If you wait until you get to the lot to finance, they will sell you only on payments and it may not be the best term you can qualify for.

Here are some additional tips on establishing credit:

Obtaining Credit

Every year, financial institutions lend billions of dollars to consumers. The decisions to loan money or extend credit are based on the individual’s assets, income and credit history. A person with damaged credit, or someone who has never had credit, may face difficulty getting a loan or credit card. Fortunately there are options to consumers in such situations:

•Open a checking and savings account
•Apply for a retailer’s charge card
•Purchase on lay-a-way
•Apply for a secured credit card
•Obtain a student loan if college-bound
•Ask a close friend or relative to co-sign for a loan.

For more information on establishing credit check out www.moneymanagement.org

For more information on credit visit Fair Isaac's site(They invented credit scores) www.myFICO.com
Take a look at their free brochures they explain what influences your credit score.

~Danke Schoen

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Answer 2

The Toyota scion people will finance first time buyers at a pretty good rate, my daughters friend just bought one and was financed with no co signer which surprised me.

But to build good credit get a charge card use it and pay it right off, do not run up a big balance. You may need to start with a store card like Sears, Target, Penney's etc.

The main thing is to not abuse the credit you do get. Make the payments on time and once you have a good credit score you will be able to fiance anything in the future.

Good Luck

Answer 3

If you are going to buy a car soon, then the only way for you to build your credit before you purchase is to go to your bank and take out a loan for $1,500. Once the money is deposited in your account, pay on it for 2 months, then pay if off. Buy your car in the 3rd month at the end of the month so it will show on your credit report, but be enough time for the negative points to return from the banks inquiry into your credit.

This may cost you a few dollars, but it is worth it in the interest you will save when you purchase a new vehicle.

Answer 4

1) Pay off or reduce any loan balances as much as possible
2) Get your credit cards down to under 25% of thier limits
3) Get your report and dispute anything negative on it (If the creditors dont respond in time it will come of your report)
4) Pay off any negative items that remain on your report after the dispute
5) Stay away from getting alot of credit inquiries until you are going to do whatever you have to do
6) Do not close out any open lines of credit unless absolutely necessary until your done
If you do all these they should keep you quite busy and you will be in great shape in 3 months. Oh and pay EVERYTHING on time ALWAYS !!

Answer 5

get a credit card RIGHT when you turn 18 with a limit of $1000 or less. then make sure you charge something (anything) every month and pay it off. Also, a cell phone (if you need one) might be a good idea. But, honestly, with a $5000 down payment on a $15k car... they'd finance a corpse.

Slainte,

-D

Answer 6

one way is to not use any credit cards and just pay cash for everything. if you need to use a credit card use it and pay the balance off right away. that is what my mom did and within a year her credit was built up and she was able to get approved for a lot of things. Finance places notice if you pay things on time and it can help you in the future

Answer 7

Get like 2 cards right when you turn 18, and maintain less than 40% of your limit...and make on time payments within 6 months you should be a low 600 and with the 5000 down, you should get decent rates.

Answer 8

How to Clean Up Credit Report
http://www.debt-loan-refinance-mortgage-credit.com/category/How-to-Clean-Up-Credit-Report.html


Step-by-Step Credit Repair Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html

Answer 9

It sounds like you're in good shape right now. just make sure when you get your credit card to always pay the FULL BALANCE due. Whe you get a credit card get it through citibank. They have good opportunities to move up into better credit cards that offer cash rewards.

Answer 10

Here you can get rates: http://www.CREDIT-AND-FINANCE.COM

RE:What is the best way to build up my new credit?