The best ways to increase the credit record.
2007-03-24 05:28:44 · 8 answers · asked by Kevin 1 in Business & Finance ➔ Credit
Use a credit card if you have to but use it properly...never spend more than you can aford to pay for or your credit rating will go down the shitter.
2007-03-24 05:36:15 · answer #1 · answered by Gone fishin' 7 · 0⤊ 1⤋
Yes, it is useful to have a credit card to improve the credit record. It is the easiest way to establish credit so that when you want to buy a car, rent an apartment, or buy a house, a credit report shows a bill-paying track record if the person pays on time, the amount of potential credit extended to this person, and how much the person owes. The credit report would also show your current employer as well as level of income. A potential creditor will look out for the items I mentioned to check the facts on the reliability of the person. Landlords may also ask for personal references, but your credit record is more essential.
You can pull a free credit report online to check your credit scores.
2007-03-24 13:06:14 · answer #2 · answered by Rebecca N 2 · 1⤊ 1⤋
Great question. Unfortunately, one needs to have one in this society, esp for stuff like airline reservations, hotel reservations, and it is also the easiest way to build a credit history. If you truly do not like a credit card/ borrowing, you can obtain one, but discipline yourself not to use it except for (1) true emergencies - not stuff like you need to eat and dont want to cook, but for real stuff, like car breaks down (2) Stuff for which you already have the cash - in which case you'd use the card, and pay off immediately. That way you are building a history of using credit well, but not incurring the debt. You have to remember that a credit card is NOT free money - it is a loan, which is repaid with interest. A good rule of thumb is - never pay credit for stuff that does not appreciate. Or else that cute top for $29.99 can end up costing you $50 on credit (and you probably would never have agreed to pay $50 for it in the first place). So yes, a card can be good, but only when used wisely.
Another option you have is a secured card - the bank holds your cash equal to the limit of the card, so you can never spend more on the card than you have in cash with the bank. Thats a tough way to go, but I believe most people would rein in the cards if this was the case....
2007-03-24 12:51:04 · answer #3 · answered by eyebeta 2 · 0⤊ 1⤋
One credit card is not a bad thing. What looks bad, is having your credit pulled regularly (once a year or more), having multiple short term accounts (like applying for something, paying it off quickly and then closing it to open another).
The best thing to do for your credit is to have a few long standing accounts. A 15 year mortgage in good standing, looks better than 3 credit cards in good standing for 5 years.
Don't make your credit look like you are fishing for credit.
Go to equifax.com, and pay (I think its like $25) for them to send you a copy of your report. Make sure nothing is off. If it is, copy it a few times, and start correcting it, by checking "mine", "not mine", or "dispute". It may take you a few times of sending it in, to fix everything, but copying the same report avoids having to pull it over and over.
Most importantly, if you do get a credit card, MAKE YOUR PAYMENTS ON TIME! Always pay more than the min bal due, and keep your limit at less than 1/2 of your available max.
Good luck!
2007-03-24 12:44:07 · answer #4 · answered by BossMama 2 · 0⤊ 1⤋
It's smart that you don't like to owe. A credit card is a good idea for emergencies though, like a major car repair and you NEED your car to get to work. Not fashion emergencies.
You could get a contract phone in your name to build credit as long as you can pay each month on time.
2007-03-24 12:35:01 · answer #5 · answered by bernel1403 5 · 0⤊ 1⤋
Yes it is. You do not have to charge it to the maximum, however pay a little more than the minmum due. until it is paid off keep the account open for at least 1 year. using it a few times. Always pay early, more than due, and never have more than 1, they are not necessary you can get yourself in TROUBLE!!, but if you use it wisely it will help your credit score.
2007-03-24 12:39:06 · answer #6 · answered by exslidergirl 4 · 0⤊ 1⤋
Credit cards are horrible things. Don't get one in less you need it for emergencies!
2007-03-24 12:36:29 · answer #7 · answered by Jane 4 · 0⤊ 1⤋
It can be if you stay on top of it.
2007-03-24 12:36:22 · answer #8 · answered by Anonymous · 0⤊ 1⤋