Best way to build credit quickly?

Question

I've looked into all the (bad credit) credit cards and it's like $150-$200 just to get setup so before you even know it you got a bill for that already. What I'm asking is there a better way to build up your credit other than these crappy cards? Cause I would rather not waste my money on them

All you people say pay bills on time. What kind of bills light bills water bill? Cause I have always been udner the udnerstanding those bills don't matter with your credit if so then make it more clear than just saying pay your bills on time.

So that is ALL bills?
vehicle payment, insurance, electric, water, phone, cell phone.. blah blah
be more specific

Answer 1

This is what makes up your credit score:

1. Payment history-35%
2. Total debt owed to available credit ratio-30%
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%

Ok, with all that this is how it applies to you. By paying everything on time, that's exactly what it means EVERYTHING. Because things that you pay every month like utilities, cell phone, rent, etc. normall don't show on your report UNLESS you don't pay them and then it goes into collections. So it's important to get into the habit of paying everything so that the things that do report show that you're paying on time.

One thing that is a start towards building credit is by opening a checking and savings account with a bank if you haven't already. This does a number of things to help you. First off, it establishes a financial relationship with a bank by being an accountholder, and the better customer you become, the more likely you will get offered loans and credit cards through the bank. Also, it equips you with a means to pay your bills on time, especially if they offer online billpay. A checking account, if used properly can be a powerful tool to help build credit.

While I'm on the subject of banks, some of the major ones (Bank of America, Wells Fargo, USBank) all offer secured credit cards. Now these are slightly better than the "crappy cards" that you mentioned earlier. Keep in mind, that with a secured credit card you have to use your own money to place a deposit to determine your credit limit. This isn't such a bad thing being that the deposit can be tied to a savings account or time deposit (CD) that gains interest while you're building credit, so you can think of it as an investment. Also, you have more control over the credit line since you can add to the deposit to increase the credit line. The higher you can increase the credit line, the better it looks on your score because it provides a cushion between the total debt you have and the available credit. From my experience with these cards, the best way I've seen is to treat the card as if it only had a $50 credit limit at all times, yet only spend no more than $20 every month. Pay it off on time and increase the credit limit as much as possible. Repeat this process every month. What this does is show activity, and build credit, yet you don't go into debt while doing it. Usually after a year or so of paying on time and keeping the balance paid off, the card converts to a regular card or a better card is offered and most importantly, the deposit money isn't needed anymore and is given back to you. This way you'll end up with a much better card than those "crappy cards" you're seeing now.

I posted several links to some that shoul work for you!


I thank you for reading and good luck!

Answer 2

How To Quickly Build Credit

Answer 3

How To Build Credit Quickly

Answer 4

Pay your bills on time. That's really the best way, if not the only way to build good credit quickly. Good credit is a direct consequence of your credit history. Having a good credit history converts to good credit. It's that simple. But be warned, your credit history can be in error due to phony credit scams, identity theft or bank errors or whatever. There is no excuse not to know what your credit report says about you and is easily obtained for a small fee.

Answer 5

RE:
Best way to build credit quickly?
I've looked into all the (bad credit) credit cards and it's like $150-$200 just to get setup so before you even know it you got a bill for that already. What I'm asking is there a better way to build up your credit other than these crappy cards? Cause I would rather not waste my money...

Answer 6

With the cards you are talking about, yes you pay a "setup" fee, but that is exactly the same amount you can use on your card. It's called a "secured" card, because basically you've already paid it off, so you can guarantee your account would never be turned over to collections (if you max it out, they've already got your money).

And that money would not be "wasted", it would be an investment into building your credit back up, which IMHO is a small price to pay especially if you want to buy bigger stuff later on credit. And you don't lose that setup money anyway, because whenever you decide to cancel the card (which you should do after a year of making timely and consistent payments on it), whatever remaining balance is refunded back to you.

Answer 7

Do NOT apply for lots and lots of credit cards. Someone once told me that doing so would be a quick way to establish credit, and before I knew it I had a Target card, Old Navy, gas, etc.

When I later applied for a home loan, I was told that the only thing keeping me from a near perfect credit rating was the number of cards I had!

Answer 8

Getting a secured credit card or a secured loan will help the quickest. Just keep your balances low and don't have a lot of open accounts.

Answer 9

pay all bills on time
that is the best method
I've done it for years and have great credit.

Answer 10

Take out small loans, and pay them back promptly.