Hi, i am 18 and have used debit cards since i was 16, but now that i am an adult i would like to start building my credits. What are the best methods i should take to gradually build up my credit ratings? Should i start with a credit card? Or maybe a co signed loan on a big purchase? What is the safest and best way i should go about doing this? I work part time at gamestop so no i am not bringing in that much dough. Thank You very much for your time and consideration^_^
I got top notch scores without ever paying any bank a penny interst.
It is 100% myth that you need to make banks rich to get 800+ scores.
When I was 18, I got a gas card from a gas station.
I charged only gas - even though it was a visa, and paid in full each month.
A year later I got a regular visa to buy my food.
Again, I paid in full - never paying interest or fees.
The trick to getting good credit is to use a credit card wisely.
Wise use - pay in full each month, and only charge what you need in life.
Anything else can ruin your scores - and in some cases ruin your life.
Employers check, so do car insurance companies.
Treat credit with respect - it will reward you for life.
If you can't get a gas card or a store card, go the bank where you have your checking account and ask them for a secured card.
Again - pay in full for what you use.
If you use it this way - it can turn into a credit card in just 6 months.
Use it like a fool, and it can take years.
Use credit - don't let it use you.
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Try no to go 25% over your spending limit, and make payments on time. That's about all I can thik of.
What everyone said was great but what has been failed to be mentioned is the more credit checks you get done the more it will ding your credit.
I have got excellent credit. I own 3 homes and even if you have to pay an annual fee for your credit cards closing accounts will also give you a ding in your credit rating.
Make sure you have a saving and checking account. Never bounce checks and always always pay your bill in full so you don't have penalties like finance charges.
Perosonally I wouldn't make a big purchase just to get credit, I'd make a purchase of something that you need, like say a book for school or something small w/ your first card. Not a TV or electronics.
Try to always use cash, if you cannot afford with cash then you cannot afford monthly is my motto. It teaches you to save for what you have.
My son had at least 10K saved in his savings and his credit union gave him his first card, he used it but wanted to get a platinum card so the more he saved the better amount he was given. Even if he didn't use it but one day you'll want a house and you have to have credit for that. When you buy a car you pay it down in twice the time, my son paid his car in 2 years instead of 4, that raised his credit and also he saved on interest. So now that he has a career, money and good credit he is ready to purchase his first home and where he lives he cannot get anything cheaper than 3-400K, so credit is Gold and without it life can be difficult.
And no matter how desperate, never go to a payday loan place. People go there that are a certain demographic. They want to know why they are poor and are doing everything to stay poor, if you don't have the money you don't have the money, plain and simple. Hard to live within your means so you live below them and you'll be okay!
The only way to "build" credit is to borrow money and make payments on time.
The only way to keep a high score is to keep borrowing money and keep making payments on time. It's a terrible financial plan. It keeps you in debt.
Credit cards,like the fico score was designed by banks to do nothing but get and keep you in debt.
If you are responsible with your money and live on less than you make. If you pay as you go and save up an emergency fund. You will not have any payments. You will have money and you will not have to worship the great fico.
Of course the bankers are gonna tell you to borrow, borrow, borrow because they make lots of money from debt. Just look around town. There is a bank on every corner.
don't let the great fico be your provider.