How do I start to build good credit?

Question

I have just opened my first credit card, and wanted to know how do I build a good credit history? besides the obvious paying my bills on time. Should I have more than one credit card? and about how long does it take for credit to build up...months...year???

Answer 1

Use your card for ever day things like gas and food being careful never to exceed 30% of your credit limit in any given month and pay it off in full before the due date.

This will do two things, first it will establish a pay history and second it will keep your credit to debt ratio low. These two things alone make up 65% fo your credit score.

As far as how long, it will take around 6-months to have much impact on your credit score.

For the best credit score/profile you will need 3 credit card accounts (revolving) with balances below 30% of your credit limit and 2 cars, boats, homes, furniture or personal accounts (installment) all with good long pay history's.

This type of mix will give you the best score and profiel possible and allow you to get just about any loan you will need in the future at the best rates.

Good luck and remember, good credit takes years to establish and only a couple of months to trash. So take care of it and it will take care of you.

Answer 2

Lenders report to the 3 major credit reporting agencies every 30 days. It will take 6 months to a year to establish your credit history. You know to pay your bills on time - I also suggest making more than the minimum payment. Pay the bill off every month, if you can.

It's not necessary to have a lot of different cards. A couple will work just fine. Use them wisely, but USE THEM! That's what builds up your credit history. Don't let your cards exceed 30% of the credit limit.

Answer 3

A second major credit card will help. Just make sure you only charge what you can afford to pay off every month in full.

The longer the on time payment history the better. Your score should start improving in a year.

Answer 4

Try to obtain two credit cards and make sure all of your monthly payments are made on time. This will help increase your credit score.

Also, any credit card that is over 50% of the available credit line should be paid down to under half of your total credit line. Your credit score is lowered when your available balance is over 50% of your total credit line.

Answer 5

Use it often and pay the bills on time and you will develop good credit . I bought a car in my name when I was first married and built up good credit by paying on time and having something in my name. I have married friends whose credit cards and cars and other things are in their husbands name,if anything happens to their husbands they will have no credit whatsoever because the wives never bought anything in their own name.I always have paid our bills but until I called the telephone co and elec co etc I never got credit for paying,get things in your name so you can start building a good credit.

Answer 6

really all you need is one credit card... what about a car loan?
pay that on time.