How should I Start building myCredit history the right way?

Question

I never had credit im 18 now!!! And i want to buy a preown car in the next 3 yrs. So im asking what should i do to get good crdit fast and what can i do with it.

Answer 1

If you want to get a great credit score sign up for a "student card" or a beginner card. I'd recommend the MTVU card from Citi bank because it has a lower rate than most starter cards and has a very flexible limit. Be sure to pay off the card on time and your credit will grow.

Anything that has a recurring bill (like a gym membership signed up under contract) will also affect your credit score. As long as you pay them off on time, your FICO score will skyrocket!

Answer 2

The process of getting high Credit Score is by purchasing items with credit card and paying them on time. The ratio that calculates is Purchases/OnTime Payments. 5 purchases and 5 on time payments will give maybe a 680 score. 100 purchases and 100 on time payments will be about 760.

What I did was get a monthly subscription that I KNOW I would use, like a movie rental subscription, downloading games, magazines etc.. All of these range from $2 - $30 a month. So each month I would get a credit card bill of a lot amount which would be very easy for me to pay, compared to buying like a $1,500 computer that you would be able to pay off with your next 3 checks from work where there's a chance you would have to miss a payment due to low funds.

I started when I was 18 and now I'm 21. My credit score is 782.

Answer 3

If you're in school (college) its very easy to get a credit card. They always are on campus handing out applications. Get ONE card use it occasionally and then pay it off completely EVERY month. If you do that for the next couple of years you will be well on your way to a good credit rating.

NEVER make a late payment. Now that you can pay everything online there is no excuse for this. I started with one credit card when I was 18 that had a $500 balance. I still have a card with that company with a credit limit of $15,000. My overall credit score is over 760.

Remember anything you do WILL be held against you for SEVEN years. Bad credit makes your interest payments higher making big ticket items that much more expensive.

Answer 4

open up a cell phone account and pay it on timeget an easy plan say 20 bucks a month for 2 years and pay it right and dont over extend the mins.
open up a jewelry account for a class ring in your name
strech out the payments to 20 bucks a month or whatever you feel comfy with. both of these accounts are whats called credit starter accounts.another good credit starter is a personal checking account.these are monitored for overdrafts and are a must for credit loans because most companys want direct deposit payments on their loans. so by having a bank account this will help immensly. get a car insurance credit account .pay 2 months down on car insurance and the rest in monthly payments ! get utilitys in your name and pay them on time and buy a tv from the power company and make payments like 10 a month and dont miss any of these payments. join a book club or record club and keep the records and pay the club rates.get a high interest credit card and pay the balance every month have your annual fee and transition fee when you get the account and dont let them let you get caught up in making minimum payments. dont enquire at too many department stores. just try to get a walmart card or sears and pay it right.

Answer 5

Your best bet to get great credit fast is to go to your local rent a center or rent club, and rent something, a computer, a bed, whatever you need and pay monthly on it, they report to credit agencies weekly instead of monthly and it makes your credit look great. Credit cards will just get you into trouble, and this way you can get used to making payments, if something comes up and you cant make your payment then the rent club will just come back and get the stuff, but will always put that you paid as agreed because they make you pay in advance, so your never really late on your payment.

Answer 6

You should start applying for credit cards but overdoing it will hurt your credit. Apply for a couple/few credit cards and make sure you do not max it out. In face, don't charge over 30% of your credit limit on all of them, this will show that you have self control and will not likely to be a potential BIG debtor. Make sure you use and pay them regularly and this will help building up your positive credit in the next couple years. If you can, also use your own name to apply for utility and make sure you pay the bill every month.

Answer 7

Get a credit card and make small purchases, paying off the entire amount when it's due. Be careful not to buy more than you can immediately pay off, though, or you could end up in trouble. Credit card debt is the worst.

Answer 8

Go to your bank and make a deposit of $500. Then take out a loan for the same amount. Pay it back in a timely manner. Open up another account and do the same thing.

This could also work with a secured credit card.

Answer 9

Buy something small on credit, like a bed or couch or something,even if you have to have a co-signer. Pay it off , and never be late. Also, always pay your rent and utility bills on time. good luck. You can also get a secured credit card. Always pay the bill on time, and never go over your limit. That ought to be a pretty good start.

Answer 10

If you have bad to no credit you may want to get a secured or unsecured credit card to build your credit score. Just make sure you make you payments on time and keep your balances below 50% of your credit line.