I want to buy my first car and i want to build credit first
2007-02-20 16:59:10 · 6 answers · asked by RicoM 2 in Business & Finance ➔ Credit
Here are some things not to do. DO NOT GET a store card. DO NOT get more of a credit card that you can afford. Do Not wait on paying any debt if you can help it.
Do get a bank card with a credit card affiliation. You can use the credit function on the card and it drafts immediately from your checking account. Thus, you are using credit and never having a debt.
The approach of using credit and paying it off quickly will increase your credit score each Quarter.
2007-02-20 17:57:38 · answer #1 · answered by khanofali 5 · 0⤊ 1⤋
Building credit before buying a car is a *great* idea... especially if you plan to finance. Are you starting out from scratch? If so, I suggest signing up for a gas card and a store card (Wal-mart offers a Discover card with no annual fee... but I haven't used this card, I just have known people who have qualified who had limited credit) From there, pay your bills on-time and in full. Inquiries and new credit applications can scare lenders unless you have built a history of responsible credit handling. Just know that some companies can be slow reporting your credit to the bureaus... so give it at least 6 months.
Just make sure that you use no more than about 30% of your available credit if possible... if you use all of the credit you're granted, you're going to be seen as a potential risk. Also, try to pay utilities and have them added to your credit report. It's good to have different types of credit.
A debit card/check card may look like a credit card (have an expiration date, credit card logo) but it does not ACT like a credit card... don't be mislead, this does NOT go on your credit report. Get a *real* credit card, even if you need to get a "secured" credit card (those backed by a deposit) a secured credit card is a credit card and WILL help your credit score, whereas a debit/check card is NOT a credit card and won't affect your score.
2007-02-21 01:16:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Pay all your bills ON TIME. that's it! that's all it takes to build good credit, is to be responsible & pay your bills on time, as expected. When the world see they can trust you with credit then you won't have a problem.
2007-02-21 01:30:11 · answer #3 · answered by sugarBear 6 · 1⤊ 0⤋
Get yourself (1) or (2) credit cards and charge everything on them. Groceries,electric,gas,water,phone,trash pickup and cable anything that you use monthly. Pay the cards off every month without fail entirely and you will build up your credit score.
2007-02-21 01:13:52 · answer #4 · answered by Pommac 6 · 0⤊ 2⤋
Take out a small loan you know you can afford to pay back on time or even early.
2007-02-21 01:17:16 · answer #5 · answered by MissWong 7 · 1⤊ 0⤋
always, always pay the bills on time
2007-02-21 01:08:06 · answer #6 · answered by barrbou214 6 · 1⤊ 0⤋