Credit question?

Question

Whats the best way to start credit??? And keep it good?

Answer 1

Either get a credit card and pay off the balance in full every couple of months or buy a car. To keep your credit good just pay your bills on time and keep the balance low.

Answer 2

There are many credit cards designed for people with little or no credit. Although they tend to have higher interest rates and additional fees when compared to standard credit cards, they'll help you build up your credit history over time. You can see a complete list of these cards here:

http://www.asapcreditcard.com/unsecured-offers.html

Keep in mind, you need to make all payments on time and always pay at least the minimum monthly payment amount. Eventually, you'll be able to apply for better credit card offers with lower APR's and less fees.

ALSO: Many credit card issuers offer credit cards to college students with little or no income. If you're a student, you may want to try one of these offers. Generally, they're better than the offers from above-- so if you can-- take advantage! You can find student credit cards here:

http://www.asapcreditcard.com/student-cards.html

After you've built up some credit with your credit cards... take out a small loan from your bank and pay it off over time. These steps should lead you to a good credit rating. Eventually, you'll be able to finance a car or take out a mortgage without a co-signer!

Hope this helps! Good luck!

Answer 3

Apply for a gas card and use it ONLY to fill up. No sodas or candy, just gas. Use it once a week and pay the bill monthly. Chevron and Texico both offer cards, you pay a little more for gas that way, but it's the quickest, easiest way to get credit started.

If you're in college, you can get credit cards through your school, but I wouldn't recommend that to start. A gas card is easier to use to learn how to manage your credit, without over extending yourself.

Answer 4

If you don't have one already, get a checking and savings account. A lot of people don't bother to pay becuase they don't have the means to. Most banks offer online bill-pay. If you're on chexsystems "death row", and unable to get a standard ckecing account, then you might need to get you a preaid Visa or MasterCard. Here's one that is EASY to get (http://www.accountnow.net)

Like I mentioned earlier, if you have a checking and savings account with a bank, see if they offer low balance or secured credit cards. What sucks about this is that you have to put a deposit (usually starting around $200) upfront to secure the same amount in a line of credit. This is not completely bad, however. Most times, the deposit earns interest while it's being held. Here's the important part. If (and when) you're able to get this. DON'T MAX IT OUT. Make small purchases (no more than $50) that you can pay off in full every month. Continue to do that for the next 6 months to a year. Hopefully by then, you would've proven yourself worthy for them to refund your deposit (with possible interest) and you have an unsecured card.

If used responsibly, it's a great way to start building a lengthy and solid history. The trick is to not get in over your head. A credit card should be used for emergency purposes, or if you're able to pay off small purchases. If you're not able to pay it on time, or at all, then it's not a good idea. The benefits like being able to rent a car, make hotel reservations, establish credit in general may not compare to the disadvantages of harassing calls of collectors when you don't pay on time, not to mention hurting your chances of being able to get bigger things like, buying a car, a house, or even a job. Normally when you use a credit card, you have x amount of days before they start charging more money, or interest to what you already charged. That's called a grace period. After a certain date, you'll receive an itemized statement in the mail detailing what you charged, how much you owe, and how much additional money (finance charges) were added on. The key to using a credit card is to not to max it out, or charge it to the limit. That's where they'll get you. It's bad enough to borrow money that you can't pay all at once, but it's even worse when more money is added on every month for borrowing it in the first place!. Like I mentioned earlier, use the card for emergencies, charge only what you know that you can pay off every month. I'll even go as far to say that if you have the money to pay for something in cash and you use the card, put that cash that you would've used to buy it in a jar, cigar box, it doesn't matter, put it and use that money to pay the bill when the statement comes in. Another thing. Don't charge a lot to fast food. It's a common trap that me myself fall victim to from time to time. That Big Mac or Whopper or whatever your favorite burger is wouldn't taste so good when you're paying daily interest on it when you charge it. Keep that in mind. I would probably get one more and that's it. 1 in 7 Americans carry up to 10 credit cards, and the average American has 4. Me, myself I have 3 which I keep low balances and I pay off on-time, if not early every month.

Another thing you can do is that you can report payments that you make on a regular basis like rent, utilities, car payments, day care, phone, insurance, etc. by enrolling in this reporting agency called PRBC. If you have been paying something on time you can have it verified and reported through them and it's compiled in a scored report that can be considered with your regular credit report. (the link to the prepaid debit card that I posted in #1 uses a bill pay service that is already registered with them)

Answer 5

just pay your bills on time it depends on your income really dont
buy things you cant afford and when you do on credit pay them back asap because interest really adds up

Answer 6

get a retail card and only one , then pay if off each month on time..