how does one build up credit?

Question

i have none at all what so ever.. what the easiest and fastest way to build it up?

Answer 1

I have some tips for you.

!. The fastest way would be to "piggy-back" off someone elses credit by becoming an authorized user of a credit card of someone with excellent credit. Once added, the activity from that account would reflect on the credit report of the person that was just added. But that practice won't be effective anymore come September of this year when the scoring system will be changed not to include that anymore.

2. The 2nd easiest way would be to apply for a secured credit card. Where you might do your banking may offer them. Orchard Bank, Wells Fargo, and Bank of America also offer them as well. You can think of this as a "credit card with training wheels" or "building credit with a savings account", becuase that's exactly how it works. A deposit is put upfront, usually tied to a savings account which allows a credit line of the same amount of the deposit. The deposit isn't used to make your minimum payment or what you owe unless the account has become delinquent and charged off and then the deposit is used to offset what's owed. You can also increase the credit line by adding to the security deposit at any time which would be to your benefit because the higher the credit line you have once it becomes unsecured the better, as with a higher credit line, it's more attractive to lenders that look to get your business, and it helps your score as well.

I hope that this answer helps you out,


Good luck!

Answer 2

Here are some quick tip to building up credit. Obtain 2-3 credit card accounts. Household Bank and Capital One are 2 of the easiest to obtain credit with, although you will probably only get a $300 limit. Use no more than 30% of the available limits (would be $90 on a $300 limit)and pay slightly more than the minimum payments each month.

Find a friend or relative that will add you to a seasoned credit card of theirs that has an excellent payment history. This will give you instant credit and credit history and will sky-rocket your credit score.

Revolving credit (credit card credit) is one of the most important factors in determining credit score. With revolving credit the credit scoring models can observe how responsible you are with your credit because this is debt that you are in control of each and every month and it can monitor credit usage patterns. See the credit and credit scoring blog below for a ton of information and tips on credit and building credit. I believe there was a post made on the blog on June 5th that is exactly what you are looking for.

Answer 3

its a pleasant line. I've been studying up on it and what is helping construct your credit score is to have a steadiness at the oldest card you've gotten and make the per month repayments plus alittle extra. So paying all of it off without delay wont harm your credit score, however it could no longer spice up it both. I consider it will depend on what number of you've gotten open with a steadiness and what the whole steadiness is. I learn additionally that you simply must under no circumstances have greater than 50% of your whole restrict used. Because that may placed a bad to your rating.

Answer 4

Buy something, anything, like an appliance. Arrange to pay it out by check. Pay early or on time. This gives you a credit history. Once you have paid the item off, apply for a credit card. Once you're accepted, you'll have a better credit history and slowly, you'll build a credit rating.

Answer 5

If you have a job, you'll be able to get a credit card with a small limit.

It's easier if you are a student.

Do not spend too much on the card, and pay back the ENTIRE balance every month.

You credit score will go rocket-high.

Answer 6

Get a retail card or a Orchard bank credit card.. and make sure u pay your bills off each month.. Never ,Never be late and after 6 months u will have some credit..

Answer 7

another way is to save up $1,000 at your bank and then use it to take out a secured loan. Make your payments for 6 months and then pay it in full. Think of your credit history and relationships in long term!

Answer 8

You could try applying for a small loan or you could apply for a credit card.The credit card is probably the easiest to get.

Answer 9

cell phone , store card ..credit card ..but make sure you make your payments .. start with one and see how u handle that and go from there. .. also research it on the internet as well..