2006-09-04 03:00:49 · 7 answers · asked by Dianne J 1 in Business & Finance ➔ Personal Finance
First of all -- do you have a steady job (and I don't mean have one for 4-6 weeks, then quit, start another job, 4 weeks, quit, etc). When you stick things out -- you are showing responsibility to maintain employment and to be a worker -- and that is a good step towards your first Credit Account.
Start small -- and think small - get a gasoline Credit Card or a Store Credit Card for your first one -- and it may be only $200 or so -- but make a very small purchase and pay it off when the bill ARRIVES -- that is the best way to start establishing credit.
2006-09-04 04:27:13 · answer #1 · answered by sglmom 7 · 0⤊ 0⤋
Student loans are a great way to establish credit without even trying. The institutions report you as paying on time every month even though you won't make your first payment for four or five years!
It can be hard to get a credit card of any sort if you don't have any credit at all. If you find yourself being denied for gas cards and department store cards, STOP applying for them! Every time you apply, it puts what's called an "inquery" on your credit report. If you have too many of these inqueries in a short period of time, it makes it look like you're trying to take on a lot of new debt and sends up red flags in the eyes of potential creditors.
If your first few attempts at getting a regular credit card fail, you have a couple of options to launch your credit career.
#1. You can get a "secured" credit card. With a secured credit card, you have to put down a deposit to secure any charges you make to your card. After a year or two, if you make you payments as agreed, they give you your deposit back.
#2. You can save up some money ($500 or $1000) and buy a CD (certificate of deposit) from your bank. You then take out a loan agaist the CD for the amount of the CD and pay it back over a period of ten months or a year. At the end of the year, you get the CD back, with a little interest. (A bank representative could explain more thoroughly how this works. It's a very common way of establishing credit. You basically borrow your own money from the bank, and jump start your credit rating in the process).
I hope this helps!
2006-09-04 10:13:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can start with gasoline or department store cards. But pay off the total balance each month. Don't start off establishing BAD credit!
2006-09-04 10:02:47 · answer #3 · answered by ML 2 · 0⤊ 0⤋
i started my credit rating with a credit card from the express. i kept it pretty much paid off (only once did i not pay the full amount, but if you don't pay it off each month, it's no biggie, so long as you pay the minimum due). then i bought a new car... nothing is better than a new car to boost it.
department stores and captial one both tend to offer special cards for students or young people (under 21 i think) to make it easier to get a card. capital one is a great starter card, but i ended up hating mine and them and paying it off and getting rid of it asap. the only card worse was something with "house" in it - it was my husband's, they charged an arm and a leg for everything!
2006-09-04 10:05:51 · answer #4 · answered by Jenessa 5 · 0⤊ 0⤋
http://www.creditboards.com has a good forum that will give you some ideas. Department store cards and gas cards are good places to start. Just do not miss a payment under any circumstances and try to use no more than 30% of your credit lines to maximize your credit score.
2006-09-04 10:07:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Gas station credid cards
Store credit cards
Be sure to pay everything you buy off every month!
2006-09-04 10:03:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you can start with any kind of a regular bill, such as a cell phone bill, gas card, cable bill, things like that will start your credit...just make sure you pay them...or you will be screwed
2006-09-04 10:06:22 · answer #7 · answered by Anonymous · 0⤊ 0⤋