What's the best way for me to establish credit so that I can buy a car?

Question

I am almost 22 years old, and I have no credit. I will be going back to school for a year soon, and when I start working, I would like to purchase a vehicle. What is the best way to go about establishing credit, and how long should I wait before buying the car?

Answer 1

If you are 22 and have absolutely no credit, I would get SOMETHING put in your name (like, a utility or the phone) or else get a credit card from a bank. As long as you are responsible, you should be fine.

Answer 2

Do what I did when I was 18.

Walk into you local credit union or bank. Tell them that you want a $300-500 loan for 6 months. AND PUT THE MONEY INTO A SAVINGS ACCOUNT. DON'T SPEND IT. Pay it on time. It should only cost you about $30 max in interest/fees and will raise you credit greatly. It's a cheap way to get credit.

Also just buying a lower cost car for 3 years and paying it off will increase your credit.

As for a credit card, There are other ways in building credit, never buying on a credit card will make you the top 1% of Americans who don't have credit card debt. Just don't start.

Answer 3

Here are the best ways to establish credit:

1. Ask your parents to add you to their credit card accounts, but don't actually spend money on their accounts. Having your name on there builds your credit score and you don't have to do anything for it.

2. Visit your local bank and take out a personal secured loan. Here's how it works...You walk up to the personal banker and explain you want to build your credit score. Ask to borrow $1,000. They will probably charge you around 10% interest and have you make monthly payments on that amount. The $1,000 that you borrow, you never get to touch. Instead, it is put into a CD (Certificate of Deposit) at an interest rate of around 4%. So essentially, you can build your credit score, but it will cost you the difference in interest rates. So, 10%-4% = 6%. 6% X 1000 = a total cost of $60.

3. Get a secured credit card. Essentially, you give the credit card company $500 and they give you a credit card with a spending limit of $500. Make a purchase or two each month and pay your bill in full. After a year, they give you back your $500. If you want to do it this way, contact me. I own a business that promotes those kinds of cards.

4. Walk into a jewlery store at the mall and apply for a store credit card, but never use it. This will build your credit rating. The reason you go to a jewlery store is because those cards are very easy to get.

If you want to view your credit report or learn more about this kinda of stuff, visit my website. Here are two helpful links:

http://www.cheapmiser.com/Lending_and_Loans.html

http://www.cheapmiser.com/loans_improve_credit.html

Answer 4

Head to "US BANK" and get a "secured credit card"... Its that simple...

Here is how it works... You give the bank $1000 and they in turn give you a credit card with a $1000 limit. Each month you use it and pay the bill when it comes in. Your $1000 at the bank just sits there waiting for you to be a good person!

The next month comes and you pay your credit card bill again and so on and so forth for 1 year. NOW you have credit!!! You can now take your $1000 and put it towards that car you want and finance the rest. Better yet over that years time you could of been saving and have a huge chunk ready to pay towards that car and finance very little!!

Answer 5

I have been given my first automobile at 18, with out universal credit and no co-signer. It replaced right into a shot contained in the ineffective of evening, yet I finally end up getting the motor vehicle i needed. The dealership economic dept will attempt to artwork around your situation, often improve the interest fee (you pay greater overall on the top). The greater you place down for the motor vehicle can help additionally, yet no longer by using plenty. What you're able to do is pass to three banks (your guy or woman economic employer) and consult with the economic table and see what loans they are able to grant and what their costs are and artwork from there. automobile public sale does not grant financing, its pay up front. With coverage, at that age i all started with a severe fee ($3 hundred+) consistent with month, for this reason the sporty automobile and age. So it incredibly is a capture 22. If the motor vehicle you like is a sporty automobile, anticipate some severe coverage fee.

Answer 6

Actually, go get the car. Nothing big and expensive. Just enough to get you around and that will build your credit.

Answer 7

There are some great tips, secrets and advice on this web page...


Read it completely!


http://www.expert-credit-advice.com/building_credit.htm