what is one of the best ways to build credit?

Submitted by kowi on Sun, 05/23/2010 - 00:25
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what is one of the best ways to start building a credit profile?

Carefully select a credit card, apply for it and use it, keep the balance owed lower. This will give you one form of credit line. Maintain a consistant payment schedule, be on time and pay more than the minimum payment. Even if you just charge $20 and then pay it off monthly it will establish a payment history.

I have a small card from fashion bug, it only has a $200 limit, I keep the balance below $30 and continue to make payments to improve my credit score. So far it has raised my score quite a bit.

Sun, 05/23/2010 - 02:23 Permalink

Hi kowl,

Welcome to this community :)

If you have no credit at all, and you are wanting to build your credit, you can try to take anew credit card. However, you may not qualify for a new credit card without a credit history. Thus, you can open a savings account in a bank. Or if you have a savings account with any bank, you can try getting a new card with that bank.

After getting card, you can make purchases using the card, and then make on-time payments on these. This will help you in establishing a good payment history, which will in turn increase your credit score. After some months, you can get another card.

You can also try getting a store card or a gas card, which can help you in building your credit. These cards work just like a credit card. Thus, you can use these cards similarly, and make on-time payments on these.

Hope this helps.

Regards,

Aaron

Mon, 05/24/2010 - 09:33 Permalink