how do you?

Question

how do you build up your credit. I have no credit history and i have no clue about the whole credit thing. Can someone help me.

Answer 1

Credit is kind of a catch-22. It's hard to get any credit anymore without first having a co-signer, it's really hard to even get gas cards or department store cards anymore.

The EASIEST way to start gaining credit is to get financed and go buy a car. Never finance at the dealership, they will never give you as good of a rate as your bank or credit union will. Dealership financing is for lazy car buyers. Work out financing before going car shopping at whatever bank you hold an account with. Make sure there is no pre-payment penalty on the loan, and double up payments each month to nix the interest and principal. This is the best first step to stellar credit. Once you establish payment history, you can get a credit card, gas card, department store card, etc.

You can also try calling your utility companies (electric, phone, etc) and ask for accounts receivable, check your payment history with them, then ask them to call in the credit bureau's and be a credit reference.

Your credit score is a delicate balancing act between multiple factors - Your maximum credit line, which means the TOTAL amount of credit you are afforded between your loans and/or credit cards. If you have 3 cards with each carrying a 5,000$ credit limit, you have 15,000$ of credit. The balance you carry on those cards - If it's too high, it looks like you don't make enough money to pay them off, so you become higher risk. If it's too low or no balance, then it doesn't reflect at all. Payment history, do you pay on time? There's a plethora of other factors as well to calculate credit worthiness, which might as well be the phase of the moon and what sign the sun is rising in. It gets more convoluted when you calculate in loans, utility payments, etc.

Answer 2

Apply for a major credit card or a department store credit card. Even if you are approved for a couple hundred dollars, accept it. Make sure you read and understand the credit terms carefully though. Use the card to purchase things throughout the month. Don't borrow more than you can afford to pay back by the end of the month. Then when you get the bill, pay off the entire balance of the credit card, Do this month after month and this will help to build your credit. Once you establish a good relationship with the card holder, they may increase your card limit also. Don't apply for needless credit, either. By doing that, they deduct points from your credit history and that makes you look bad to other lenders. Don't let others pull your credit needlessly either, like by saving 10% off your purchase, etc. Also, if you're old enough, think about financing a car. Only buy and borrow what you can afford, but a car payment will also help you build your credit history. Always pay on time (early if possible) and always pay extra! Good luck!

Answer 3

You can get a secured credit card. Basically, you put some money in a bank account and they give you a credit card with a limit that is equal to the amount of money that you put in the account. If you have someone who will cosign for you on a credit card that is even better. Get 2 credit cards and pay all of your bills on time EVERY time and your credit score will increase and you will get more credit offers that do not require security deposits. Oh, by the way you have to use the credit cards but you can make the minimum payment one month and pay it off the next. If you never carry a balance no balance will get reported to the bureaus.

Answer 4

Capital One seems to give out credit cards to people with out credit history.

Start with a credit card if you can get one. Use it a little bit each month, but pay off the balance in full each time. After about a year you will start getting offers for more cards.

After a year get a couple credit cards and use them a little bit and pay them off full each month.

You can also build credit by getting a car loan as well. Like somebody said before, a credit union or bank usually gives the best rates.

Answer 5

A quick way to establish credit is to get a secured major credit card (Master Card/Visa). Secured means you open up a savings account (typically $300-500) with the bank that issues the card and your available credit is equal to the amount in the savings account. This is NOT a debit card, but a major credit card.

Use the card responsibly and PAY IT OFF IN FULL every month. After about 3-6 months other credit card companies will offer you unsecured major credit cards.

Also, be careful with your credit rating. Protect it.

Answer 6

There are several credit cards that help people with no credit or bad credit. such as capital one, juniper, wash mutual, etc. I would get a low credit line......charge something on it and pay it off. after six months you will have a small history and a beginning.
This should create a credit score also. If you pay well ..........during this time,, I know capital one will even loan you money for an auto if your employed and making at least 1800.00 gross income.
randy b

Answer 7

get some credit, get a credit card or a loan, I think the best starting credit card is capitalone, because they are pretty good at approving people that have no previous credit. Do not exxagerate just get one or two cards and use them, you don't need to buy something big you just gotta show that you will use the credit.

Answer 8

Start with a local store like MANDEES or Joyce Leslie
Then even if you run it up to the limit make the minium payment due every month or even more.
After you pay faithfully for 6 months you will have more credit opp/and then your credit score will go up.
PROTECT IT GIRL
Your credit rating can make you or break you!

Answer 9

Hi,
Go to see this link: http://www.gotoinfolink.com
I know they have a section for people who have a bad credit. So It will help you to have your first credit card...and build a good credit.
Hope that help ;-)
Jeff

Answer 10

Start with store credit cards, Walmart,sears,food lion,Lowe's,Target,etc,etc.These cards are easiest to obtain.If this don't work barrow some money from a friend(300 to 1000 $ )Deposit in a money market acnt. Wait a couple of weeks & then go back to the bank & ask for a secured loan. The money you have in the money market acnt will secure the loan. Better yet, Open three money market acnt in three diferent banks,borrow money from one acnt & use it to pay for the loan inthe other bank.It will cost you a little bit to do this but,you're credit will only get better & better. OH, Make all you're payments on time. Better yet,double up on you're payments & pay ahead of due date. Good luck. Don't be afraid to talk to a banker.Tell him exactly what it is you want to do & they will help you. If they say no go to a different bank.Don't give up. try several banks.