2006-10-02 16:46:22 · 23 answers · asked by trancevanbuuren 3 in Business & Finance ➔ Credit
ANSWER FROM SOMEONE IN CREDIT PROCESSING PROFESSION!:
As several eluded to, get any type of credit card. It can be secured or even pre-paid. Here's the trick though... if you pay off the balance immediately, you really are not establishing positive credit. The best credit building trend is to maintain a balance for at least 90 days. Take out a hundred, and make 4 monthly payments of $30 or so to establish payment history. You'll start getting offers from other creditors. Those that pay off their entire balance each month are not as desireable to credit agencies because the institutions want to earn money (aka interest) from you borrowing and maintaining a balance.
2006-10-02 16:59:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are located in the U.S. or Canada you can go into most any bank and apply for a credit card with a deposit in that bank. For example - you want a $500 spending limit on the credit card, so you deposit $500 into a special bank account and the bank monitors your spending on that credit card.
Now obviously you want to make your payments on time and if at all possible pay off the entire bill when you receive the statement in the mail. The bank will not let you go over the $500 limit unless they approve it or notice that you pay off your balance each and every month.
You build credit through a bank by showing that you value the credit being offered to you. The big plus is when you pay more than the minimum balance each month. As the bank notices that you pay down your balances each month they can decide to increase your credit limit.
This is about the easiest way for a 19 year old to establish credit. Borrowing money from family or friends doesn't count. You can't go into a bank and tell the manager that you've borrowed money from friends and relatives. It doesn't matter to the bank. They want to be able to monitor your spending each month.
2006-10-03 01:07:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A "secured" credit card works great for someone who has no credit score yet or a LOW credit score...
It basically means you give the bank $1000 they then give you a credit card with a $1000 limit... you go shopping, and pay the credit card bill when it comes monthly like normal credit cards... The $1000 sits in the bank and does not get touched, that's where the title "secured" comes in.
(Do not do business with "Captial One" or any bank associated with them) but thats a whole different story!!! TRUST ME !!
In a few months you have credit built up and you can ask for a higher line of credit. Aaaaaaaaaaah the credit cycle has now begun.... Good Luck and pay off your credit card debt EVERY month and life will be good !
2006-10-03 11:28:44 · answer #3 · answered by Kitty 6 · 0⤊ 0⤋
If you're a student, you can get a credit card very easily. If not, get a job and a checking and/or savings account. After a few months apply for a credit card from a bank that issued the checking/savings account. That should be enough to get you started. Oh, yeah... always pay on time and the full balance.
2006-10-02 23:49:12 · answer #4 · answered by curious1223 3 · 0⤊ 0⤋
If you're a student it's actually easy for you to get your first credit card but that's not the only option. For tips on building credit from scratch check out http://creditwisdom.blogspot.com/2006/09/building-credit-from-scratch.html.
2006-10-03 02:35:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
one of these two is the best way...
1) get a credit card and spend about 20 bucks on it every month and make all of your payments on top...the problem is sometimes yuo get out of hand and go crazy with it...
2) take a couple bucks every pay check and put it into a CD at your bank, you can do the minimum for like a month and then every time it will build yuor credit...
also if you get a place on your own, everytime you pay bills ur credit goes up
2006-10-02 23:50:10 · answer #6 · answered by frank_the_tank15 3 · 0⤊ 0⤋
Get a small personal loan for a couple grand and pay it off on time. This will help give you good credit. Get a credit card and use it only some and always pay off the balance each month.
2006-10-02 23:49:29 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Why build credit, all credit means is that your in debt. I learned along time ago save and pay cash for what you need. I don't have any credit cards, I use my debit card for almost everything I buy. I don't believe in owing money. I paid cash for my vehicles and houses and by the way I own 2 homes and 2 vehicle and paid for them with cash. If you work hard and save your money, you end up in long run ahead.
2006-10-03 02:30:51 · answer #8 · answered by show_em_your_badge 3 · 1⤊ 0⤋
Try getting a SEARS card! its a great way to learn credit! just remember, you will probably only get a about 900.00 dollors worth of credit from them which in reality the card is owned by Chase Bank, So remember if you want good credit get a bank account! if you already have a savings, get a checking account! after that go for the sears card! and good luck!
2006-10-02 23:52:01 · answer #9 · answered by patrick s 2 · 0⤊ 0⤋
Get a secured credit card. Basically, what it is, is a small limit card (like $500) that you put the money down first. It helps build credit, plus it has a low limit so you dont get in too deep right away. Always use caution when using credit. READ THE SMALL PRINT!!!
2006-10-02 23:49:43 · answer #10 · answered by julez 6 · 0⤊ 1⤋