I woud like to establish credit?

Question

What is the best way to estabish credit? I want the best rates, nothing I have to pay too much on. I would only be buying gas or fast food. I just don't know which credit card is best for me. Interest rate changes and other hidden fees are added at a later time. I just want to prepare myself to buy a house in the next 3 years. I have nothing to work with as of now.

Also, I don't own anything, I don't have any bills, I am in school. I owe and own nothing.

Answer 1

I would start with a store card such as sears, JC Penny, etc. Wherever you shop the most. These cards are generally easy to get, even with no credit history and is a good way to start building credit. You dont necessarily need to make large purchases, just make sure you send the payments in on time. I would reccommend doing this for around 6-8 months before getting a credit card. The rate will be significantly better if you have a somewhat established credit history. However, credit card companies do have offers for a person in your position. You just have to shop around a little. Hope that helps!

Answer 2

Since you are in school, I am sure you are receiving tons of cc offers. Apply for 1 of those, but be aware of interest rates and introductory rates and how they work before you apply. Also, avoid cards with annual fees. You will probably be able to get a $500 limit. From there, make 1 purchase per month on gas, groceries, or fast food, etc. Pay it off as soon as you receive the bill. Make sure you pay it off in full every time. No matter what the interest rate is, if you pay the balance in full you will not have to worry. This will slowly build your credit.

Answer 3

I purchased two homes without having credit established. I thought that filling out those credit card applications would help me at first, but all they did was lower my credit score because of the inquiries. The best way is to keep paying your bills on time. If you have a cell phone in your name, that will look good on to your credit report. Just having something in your own name will make a difference. Consult with a professional about your credit because this is just an opinion site. Nothing's factual here on Yahoo! answers.

Remember: You don't have to be in debt to establish credit. It hurts in the long run.

Answer 4

First, apply for a Major Credit Card to see where you stand. If you're rejected, get a copy of your credit report and clean it up!

CREDIT LINES: When you borrow, it's called a "line of credit" or a "credit line." A revolving credit balance is better than not having one, in terms of credit scoring.

Like another user said, get a simple credit card, charge 100 or so, and pay it off at a reasonable amount each month - you have to keep a balance, but a minimal balance.

Also: make sure to have BOTH checking and savings.
Also: stay at one job instead of job hopping
Also: stay at one apartment instead of moving.
(lease in your name)
Also: pay down any medical bills.

Answer 5

In order to build good credit you need to start building a good history. You need to partner with companies that will report to all three (3) credit bureaus, but won’t pull your credit. Crown Jewelers is a great company that will give you a small credit line and report to all three (3) credit bureaus. Easy approval.

http://www.crownjewelers.com/

Second, open a secured credit card. New Millenium Bank is an excellent choice. They won’t check your credit and report to all three (3) credit bureaus. You can even pay your bill online.

http://www.nmbonline.com/

Revolving trade-lines are highly weighted in credit scoring, so keep your balance –to- credit limit ratio low. Never miss a payment. Before you know it you will be on your way to better credit.

Answer 6

If you are in school you should have no problem getting a credit card. Just charge one or two things on it and then pay the balance as soon as you get the bill. This will make your account show up as active.

Answer 7

Hmmm, instead of getting a credit card, go to a bank and get a line of credit, you can get a small amount that you pay low on, and at the end, you get the amount you paid on. i.e. You get a 250 dollar line of credit, pay $10-40 per month, and at the end you get the $250. This is great because it's hard to screw up and overdo, no, you can't get the money right away, but you are saving money towards your house. You can't go out and say, oh, I love those shoes, I'll charge it this once on my credit card... (which is how most people screw up their credit). Its great and easy and very low if any interest!

Answer 8

Since there are so many credit card options out there, I would go for one that has no annual fee (if you're just going to use it on gas or food).

You may also want to find a gas card to get reward points: http://www.creditorweb.com/categories/gas-credit-cards.html

Answer 9

Start with a secured credit card and make all payments on time.

Here is some additional info.