I have one credit card now since 5yrs ago. I want to build up my credit, but i hear there are many ways aside with credit cards. I was thinking of opening up one, or poss two credit cards, just to gain notoriety with the creditors, and ofcourse use them!. What do you guys recommend for me to build up more of credit history?. Thanks!
2007-05-14 16:33:43 · 8 answers · asked by EastCoast 1 in Business & Finance ➔ Credit
Pay your bills on time, every time.
Use your credit card - but pay the balance every month. Multiple credit cards won't do you any good otherwise.
2007-05-14 16:37:38 · answer #1 · answered by Zasu 5 · 1⤊ 0⤋
First, you need to make sure you pay all your bills on time. Utilities, cell phone companies, car payments, etc. all count toward your good credit by being on time with your payments. If you are late with one payment, that will affect your score.
Next, don't max out your credit card. Put gas in your car. Buy groceries. Then, when you get the statement, pay it off!! Make sure you HAVE the money, before you put anything on your card. That way you don't get stuck!!
Remember that every time a company checks your credit, this can be a mark against you. Opening up multiple credit cards can create bad habits that will get you in trouble fast. The biggest mistake I see people make is relying too heavily on their credit card. Self discipline is very important. If that is achieved, a second credit card can add you a positive credit score. However, too many open credit accounts on your credit can also hurt you. Close any that are not needed and make sure you specify to the creditor, to CLOSE your account. Otherwise, it will show up as an open account on your credit listing.
A person can build up good credit buy careful management of credit cards, loans, and a history of prompt bill paying.
Good luck!!
2007-05-14 16:48:37 · answer #2 · answered by Staveros 4 · 1⤊ 0⤋
Credit history, credit score, credit report-- these words will greet you sooner or later when you apply for a loan, mortgage, rent an apartment, apply for a job, or last but not the least apply for a credit card. Efforts towards building a good credit history should begin early, right from the student life. Ironically most of the students are not aware what is needed to build a credit history. At : http://www.credit-card-gallery.com/article/234,Start_building_positive_credit_history_in_3_simple_steps we look at three simple steps that can get you a jumpstart towards good credit history.
2007-05-14 21:52:10 · answer #3 · answered by brady ewart 3 · 0⤊ 1⤋
Pay all your bills on time, don't carry any or very minimal balance on credit cards, and only have 1-2 credit cards. That's what I was told when I started rebuilding my credit.
2007-05-14 16:37:06 · answer #4 · answered by Julie and Jason 2 · 1⤊ 0⤋
Get credit and use no more than you can payoff on 30 days.
Having open credit that you do not use greatly increases your
credit score.
Borrow money at the bank for 30 days. Do not spend it. Put it in savings and payoff on time....
2007-05-14 16:47:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Make small purchases on the card and always pay it promptly. That gives you the track record creditors like to see.
2007-05-14 16:41:20 · answer #6 · answered by Rich Z 7 · 0⤊ 0⤋
Go to your own bank and put $1000 or more in a savings account, then take out a bank loan using that as collateral. Make all the payments on time.
2007-05-14 16:37:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
that may help but make sure u can pay your bills off on time each month
2007-05-15 05:16:22 · answer #8 · answered by shorty21 5 · 0⤊ 0⤋