i know establishing credit thru a credit card is the top way to establish credit. what other factors? loans? living status? this all before owning a home and car. thanks
2007-02-28 12:58:29 · 7 answers · asked by nycgreekguy004 1 in Business & Finance ➔ Credit
anything that is a credit account that reports to the credit bureaus affects your scores. credit cards, department store cards, student loans, car loans, boat loans, rent-a-centers in some cases, mortgages, tax liens, judgements, bankruptcies, foreclosures, consumer finance accounts, etc. also, the amount of debt you owe, the amount of your credit limits, the pay history on the debts and the number of times companies have looked at your credit can affect your score. the best way to establish credit is to be added as an authorized user on another person's account. also, simply by opening small accounts and paying them on time, you can slowly grow your credit and increase your score. NEVER PAY LATE and DONT TAKE OUT TOO MUCH DEBT. good luck, hope this helped!
2007-02-28 13:08:16 · answer #1 · answered by abcdgoodall 4 · 2⤊ 1⤋
cell phone do nothing for establishing your credit as previously answered. Neither does auto insurance. Your insurance rate is based on your credit score but that is not a bill that is reported to the bureau to create credit scores. You need to make sure that you pay all your bills on time, especially those reported to the bureau. One late payment (30+ days) can hurt your score over night. Your pay history plays a big part in your credit score. A credit card is good for establishing credit but you do not want to owe a lot in unsecured debt, especially if you are looking into purchasing a home. You may want to consider a secured loan using your savings account at your financial institution. Creditors also look at your high credit. You may have a hard time getting a 65,000 (just using a figure) mortgage loan with your high credit being a 2,000 credit card. They could say that you have no comparable credit to compare with the loan you are requesting. New credit can bring your score down also, as well as a bunch of hits from companies trying to pull your credit. You should have your credit pulled as little as possible.
2007-02-28 13:16:24 · answer #2 · answered by moonlillies 3 · 0⤊ 0⤋
I absolutely agree with what ABC said above. To clarify what some others said, a checking account or auto insurance will not help you to rebuild credit. Basically, the person you pay money to, has to report your activing to the CRA's (credit reporting agencies).
On the flip side, bouncing checking/overdrafing account will hurt you. How long you have worked at your job, how much money you make, criminal charges, etc. will not impact your score. It is all about debt. Rarely to landlords and utility companies report about you.
To address preparing yourself to own a home or car, the lender will look at your score, but is also interested in an establish checking/savings, longevity at work, salary, etc.
2007-02-28 13:21:06 · answer #3 · answered by Ks62ladybugs 2 · 0⤊ 0⤋
Payment History - 35% of your score is based on this category
Amounts Owed - 30% ""
Length of Credit History - 15% ""
New Credit - 10$ ""
Types of credit in use - 10% ""
The score also looks for rate shopping, looking for mortgage or auto loans. with multiple lenders.
Know whats in your credit report and take care of what might or might not be on there.
2007-02-28 13:23:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you may repay the small charges (< $one thousand) first. That reduces your month-to-month outgo. And in the event that they're credit playing cards, reduces the p.c. of accessible credit in use. A plus on your FICO score. After that, pay one greater $one hundred or so on the $2185, and one greater $one hundred on the student loan. Then positioned the the rest earnings an emergency fund (like a quick term CD). and don't incur new charges. do no longer consolidate charges. do no longer take great factor approximately 'low pastime consolidation' teasers. no rely if or no longer you will get a loan for Flight college will count on your credit and your earnings. it is not undemanding to declare from this records what you will qualify for. yet elevating your FICO is substantial. 496 is in basic terms too low. objective for seven-hundred. you're able to do it. solid success
2016-11-26 21:12:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Paying bills on time. Longevity at your job and place of residence. Checking account too. A Credit union is better than a bank.
2007-02-28 13:07:01 · answer #6 · answered by foxyfall 2 · 0⤊ 0⤋
auto insurance...cell phones.(?) loans. some sort of financing...
2007-02-28 13:07:28 · answer #7 · answered by sweetie_woman_1 3 · 0⤊ 0⤋