whats the best way to build up your credit rating?

Answer 1

It all depends on where you are. I am going to answer the question how to build up your credit score, because for the most part that's the same question, at least for lenders who use credit scores, which is a lot nowadays.

If you have good, established credit, then pay your bills on time, have three or four credit card accounts, and avoid using more than 10% of your credit line, or certainly no more than 50%. Similarly, watch your overall balance to credit line ratio. That is crucial. Don't come even close to maxing out your credit. It might help to have a variety of types of credit lines: installment, revolving (credit card), mortgage, and so forth. Carefully paid mortgages are excellent for credit lines. Car loans are pretty good too. Finally time is on your side: A certain portion of your creditworthiness depends only on how long you've had credit, and there is nothing you can do to improve this but wait and pay your bills on time. By the way, a quick warning: Do not cancel the oldest credit card you have on record. In fact, in general, if at all possible, do not cancel any credit card you've used for any length of time. (The reason is that once you cancel it, you start a timer: in six years the account will disappear, and with it any record of your good credit. If this is your oldest card, it means the length of your credit experience will get shortened, and you don't want that.)

If you don't have established credit, and want to establish it, start with a secured loan. My recommendation is to find a bank or credit union that will make a loan against a CD. You deposit some sum of money, maybe $500 or $1000, and then take a loan against it. The lender will likely grant you a loan since it is fully secured should you default. You can also do this with credit cards, but I think the companies tend to be predatory, so if you can do it with your local bank, I think it is better. Then when you've paid that off successfully (and waited 30 days for it to be reported to the credit agency), apply for a department store credit card; they are easier to get. Use that judiciously for a while, and you may be able to graduate to a MasterCard or Visa.

You'll want to get a copy of your credit report regularly. Go to http://www.annualcreditreport.com where you can get one free credit report from each agency each a year. I try to get one every four months. Watch for inaccuracies and identity theft. You can also get your credit score, http://www.myfico.com -- be careful, some other places, such as TransUnion, will sell you what they claim is a credit score, but doesn't correspond to anything any lender uses. FICO is the gold standard and you can't go wrong buying one. (No, they aren't cheap, much less free, but they are worth it.) A credit score is a very simple and effective way to monitor how your creditworthiness is increasing. 850 is around the highest. 700s is good. 723 is the U.S. average. Scores below 600 are high risk. 620 is considered the dividing line between bad and good credit.

Mobile phones won't help your credit, at least where I live. Check your credit report; if you have a cell phone account and it isn't listed, it does you no good. Any account not listed on your credit report does not contribute to your creditworthiness.

Answer 2

That question varies from what position you're in.
first would be to establish some credit.
DO NOT USE A CO-MAKER. Every body will want one.

To start get a credit card from a bank like Bank America that will give you a credit card line of secured credit against your deposit
and after 18 months , free your bank account and increase your credit line.

Always pay you bills on or ahead of time. late charges increase your interest rate and reduce your credit score.

DO NOT OVER APPLY. Credit inquiries also reduce points.
You should have 4 to 6 lines Always pay more than the minimum payment.

Answer 3

Make sure you make your payments on time and dont miss them.
If you dont have a credit card/loan/contract mobile then get one. Make sure you pay it on time, but try not to pay it off - that wont work. You have to make the payments.

If you have bad credit already and cant get a loan/credit card etc, think about getting a contract phone. I have rubbish credit but I got a contract phone with T Mobile. I had to pay £100 deposit (which the shop paid £50 of for me) and I got it back after 3 months. Now I pay my bill on time every month and that is helping my credit

Answer 4

i might recommend getting a SECURED credit card. that's the place you place money up front as collateral, and in spite of the indisputable fact that plenty you submit, that's how plenty would be on the cardboard. I went to economic employer of united statesa. and their minimum replaced into $3 hundred so as that's how plenty I even have on my credit card. that's the perfect thank you to construct credit, and that's how I geared up mine.

Answer 5

get a couple of credit cards, that will bump your rating up immediately, cut them up or use them! Get married that does the same. Mortgage, moblile phone on contract, rent a tv....there are loads of ways!

Answer 6

its strange, your credit rating does not depend on how good you are at paying back loans or even how able you are to pay off creditors,but the more you borrow the higher your rating is.
Would it not be better to have no debts and no credit rating

Answer 7

a contract mobile phone is def the best way, nice and easy to control and just make sure you never miss any payments

Answer 8

is to get a overdraft/credt card from your bank and then make sure you pay it of and within a few momths your credit reating will go right up

Answer 9

I'm in a similar position to you and it seems to me that you simply reply to as many questions as possible with...yes...no...don't know ....or good question glad you asked !!...whoops just realised you were talking about "cash" not points on this site !!!

Answer 10

spend a lot of money and repay it in time...