For somebody who does not have much credit, from your personal experience, what are some of the best ways to build credit?
2006-09-20 12:15:43 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
if you have any credit cards, the fastest way to raise your credit is to spend a couple hundred on one or two cards and make ONLY the minimum payment. Your score will shoot through the roof VERY fast. Credit card companies are more likely to help you out when they make money off of you. By making the minimum payment, you are paying them a little interest, and they, in turn, will boost your score. When I was in the mortgage business, we used to use that trick to turn people's credit around quick. Hope this helps!
2006-09-20 12:20:44 · answer #1 · answered by crazedlunatic29 2 · 0⤊ 0⤋
Cell phones don't build credit, nor do renting apartments. Credit cards, homeloans, car loans, general bank loans, school loans, etc. Those are the best ways to establish some sort of credit. If you are having trouble receiving credit because you're caught in the whole "no credit, but can't get credit because of the no credit" issue than consult your bank and see what you can do about getting an unsecured credit card.
2006-09-20 19:20:59 · answer #2 · answered by Eric S 2 · 0⤊ 0⤋
ALWAYS pay your bills--that's the only way. Take out a small loan or obtain a credit card and pay balances promptly if not a bit ahead of time. (It's excellent in another way because you are using other people's money at no interest for a while.) Having a savings account will probably help you obtain credit.
2006-09-20 19:23:31 · answer #3 · answered by DelK 7 · 0⤊ 0⤋
Get one credit card, make sure you are always on time with your payments. Don't allow them to give you too large of a line of credit. If you have too much credit available, but not the income to support it, that is looked upon as a negative as well.
2006-09-20 19:18:58 · answer #4 · answered by Speaking_Up 5 · 0⤊ 0⤋
Step-by-Step Credit Guide
http://www.debt-loan-refinance-mortgage-credit.com/category/Step-by-Step-Credit-Repair-Guide.html
2006-09-21 07:28:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
First of all you need to get some credit cards. Visa, mastercard, amex, etc. Don't go crazy and get too many because that is bad. Don't get too many cards from like target, jc penny, mervyns, etc, that starts to look bad on your credit score. Pay off your credit card bills on time and in full. Try not to make your balances reach your credit card limit it makes you look like you are in debt. Don't co-sign when you get a loan, make sure you get your own loan so you can establish that you can pay off a loan. Make sure you make your loan payments ontime.
2006-09-20 19:20:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Only have one credit card that has a line of credit that is within a reasonable proportion to your income and use it and pay it off every month promptly. Never lease! Buy a really cheap car on credit, pay it off. Buy a cheap house in a nice neighborhood, pay it off. Simple.
2006-09-20 19:18:08 · answer #7 · answered by Evo_Morales 2 · 0⤊ 0⤋
Take out loans and be sure to pay them back on time and it will get you credit pretty darn fast!! In order to do that tho you must have been working for 6 months or more.
2006-09-20 19:17:58 · answer #8 · answered by lildevilchild_87 5 · 0⤊ 0⤋
get small credit cards, like store brands (target?) or buy items on time, and always, no matter what, pay on time. good credit is based on never getting a late charge and being reliable even if you owe a lot and only make minimum payments.
2006-09-20 19:18:28 · answer #9 · answered by foxfirevigil 4 · 0⤊ 0⤋
start out with a small amount credit card..store cards are easiest to get, pay it off after each statement and voila, credit points. larger amounts like car purchases and bank loans(co-signed works too) build it fastest. good luck.
2006-09-20 19:22:57 · answer #10 · answered by chuck g 2 · 0⤊ 0⤋