Raising your credit score?

Question

this may be a dumb question but how can I raise my credit score higher? I don't have any credit cards or a job or anything like that, so, what could I do? I'm just wondering because I want my credit to be good when I go to get a car sooner or later.

Answer 1

You do need to get credit cards. The best way is to get a card or two, and charge a low charge every month, and then make sure you pay it off on time every month.

Credit scores are based on three things primarily:
1. Ratio of credit balances to available credit. You want to keep your credit balances under 30% of your available credit from all your cards.

2. Payment history. You want all the payments to show you pay them on time. Late payments or non-payments reduce your credit score.

3. Length of credit. It helps when you've had credit for years vs months.

One last thing to know. Every time you apply for credit, your report takes a ding. So keep your applications to only 2 or 3 a year, including credit cards, car loans, mortgages, etc.

So simply put, get a credit card, make one charge every month, for a small amount, and pay it on time every month. In no time at all you'll have a good credit history.

Answer 2

Open a secured credit account. Take at least $500 (but preferable $1000 or more, as other potential lenders take larger accounts more seriously as an indicator of fiscal responsibility), and shop banks for secured credit cards. They will take your money, open a savings account in that amount in your name, and hold that money as security for a credit card of the same (or in some cases, slightly higher) amount. Then use the card sparingly and always pay it off every month. After a certain amount of time using that responsibly (depending on the issuer), they will release your deposit and give it back to you, making the credit card unsecured.

You can also do the same with a loan. Take $1000 or more to a bank, ask for a loan secured by the money. They will deposit your money into a savings account to secure the loan, then give you a loan for money in the same amount. Take THAT money, put it in ANOTHER savings account, and set up an automatic payment schedule which will take the payments from that money. Don't touch that account. At the end of the loan, you will get your security back, plus interest, and a much, much better credit rating to boot.

Answer 3

First get a job.
Then take something out on credit, like a credit card or a bedroom set or something. Be sure to make all payments. If it is a credit card, don't pay it off the same month so you won't get charged interest. Do it in two months. This way they give you more credit. If it is an expensive item, try to pay it off before you are supposed to. Don't take out too many things on credit. You will get overwhelmed, plus everytime someone checks your credit, your number goes down a point.

Answer 4

apply for a credit card. and make timely payments