Building Credit             Click here to Print

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#Shelly99 - Says,

HI, I'm new here and i just turned 18. I am wondering what is the best way to start and build credit.
#GarySnober - Says,

Hi Shelly, Welcome to the forums. Ok lets start off with do you have a job? Some sort of income? You can apply for a secured credit card in which you put up money for the credit limit Say you put up 200 they will give you 200 credit card limit and these cards do report to credit bureaus and help you build credit. Next you can try to apply maybe at a department store but in this economy this may be tough to get one. I would say the secured credit card would be your best bet at starting to get credit.
#Mary - Says,

Hi Shelly
Yes, I agree with Gary. Since you do not have a credit history, you will not qualify for a new line of credit and so you have to go for secured credit cards in order to build up a good score. Now since secured credit cards are backed by your own money, there is not credit check done when you apply for the card. In order to build up a good history, all you need to do is to use the credit card regularly and repay it back within the due date.

#GarySnober - Says,

Hi, Yes a few more things to add. Yes use it regularly but please dont max it out in 1 month. Use it to about 35-40% max credit limit and pay it months and please dont be late on a payment.
#Russell - Says,

FYI Bank of America will run a credit check for a secured credit card. I just got denied after submitting a 300 dollar cashiers check. I was told the same thing " you can not be denied for a secured credit card " by a BofA banker. I have a credit score of 620 and was denied.
#Mary - Says,

I went through the B of A website for secured credit cards and checked the terms and conditions. It was mentioned that if you agree to the terms and conditions, you automatically authorize FIA Card Services, N.A (the credit card division of BOA) to pull out your credit and employment history. This means that the bank conducts a credit check even for a secured card. I think that you can go for other secured cards like Applied bank secured VISA card or New Millennium Bank card if you want to build up your credit.
#internet15 - Says,

Getting credit can be one of life’s Catch-22’s: it is hard to get credit if you don’t already have it, and if you already have it then you don’t need it. Young people and those who have never borrowed need to build credit over time so that they can qualify for larger loans when needed.
If you do not have a credit history, lenders do not know whether or not they should give you money. Without any credit history, they can’t tell if you are a responsible debt-payer or a bad risk. You need to build credit in order to prove your creditworthiness.
Remember that credit can be a useful tool, but it can also get you in trouble. After you build credit, you may be inundated with offers. Banks, credit card companies, and others will want to loan you money because they'll know you're a good borrower. Don't take them up on every offer -- only borrow money when it truly benefits you.

#Firang - Says,

internet 15 ,
Inorder to build credit one need to borrow, on the basis of repayment track record one's credit is built up.

But for the first time borrower it is difficult to get the credit immediately so they should start with secured credit card.Once their credit is built then they can go ahead and avail bigger loans.

keep us updated.

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#Jack - Says,

There are literally hundreds of credit repair websites and a lot of them try to guarantee success but the reality is most of them are just a waste of money. They use methods of repairing your credit you can do yourself if you simply google credit repair templates. Their process is very lengthy and requires months and even years to get a lot of things removed and sometimes the bad marks can come back as some companies are very persistent, especially if you still owe them money.

The only guaranteed method to repair your credit is to pay off the old bills and get your derogatory balances to $0. "Well that isn't very helpful" is probably what you are saying. Since none of us just have cash laying around to do that there are other things you can do that are guaranteed to increase your FICO score practically overnight and start rebuilding your credit.

It's actually very simple. Sign up for Millennium Secured Credit Card and send them $300. Buy $90 worth of groceries on it and make the payments. Keep the balance under $90. Then sign up for and get a $10,000 unsecured credit card, buy something and make the payments. Do a google search for USA Shopping Club and sign up with them for $12,500 unsecured credit card buy something and make the payments, Eclub USA and get your $3,500 credit card and finally Horizon Gold and get your $500 credit card.

Once all of these companies report to the credit bureaus you are going to see an immediate increase in your FICO score. Guaranteed. Then you can work on getting the bad marks paid off and removed. It's much easier to get them permanently deleted if you don't owe them any more money.

#Margaret - Says,

Get a SECURED credit card. And buy things on it that you would normally buy of things you need. Buy, pay, buy, pay. and it will build up. Also, Look for a secured credit card that has no annual fee.
#Margaret - Says,

A secured credit card is a great way to build credit. But for opening a secured card often requires a deposit of $200-$500 that serves as an assurance to the bank that any credit you use will be paid back.

Other things you can do to make sure you're building credit rather than hurting it is:

1) Don't open several new credit cards in a short period of time. In the world of credit scoring, this indicates that you may be overextending yourself and can hurt your score.

2) Try not to use more than 50% or so of your total credit limit. Credit scores take into account "credit utilization," which is a measure of how much credit you use compared to how much credit is available to you. If you're using a lot of your credit, your credit utilization will go up and your score may go down.

3) Pay all your bills on time every month. If you're late on a payment, companies can report this late to the credit bureaus, which could damage your score. Also, some utility companies are beginning to report regularly to the credit bureau. As a result, your payment history on these bills will affect your score.

4) Check your credit report regularly to make sure what's on your report is and maybe more importantly, what shouldn't be on there isn't. Credit bureaus and the companies reporting to them can make mistakes and these mistakes can take a toll on your score. Stay on top of your credit and dispute any inaccurate information you may see.

#Margaret - Says,

Another thing you can do is-

Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments -

#Steve_Smith - Says,

If you have a debit card with your bank account and have a job, it will be pretty easy for start to build your credit. Most stores are happy to extend credit for white goods or electronic equipment if you have a debit card. You need to make sure that you can afford to make regular payments, as being late will not help your cause. If you rinse and repeat this process several time it all helps with the process.
#sassygal - Says,

Be Smart about it for real! Don't bite a chunk too big to chew.....

Start small like a gas card (If you have a car) Even if you don't it's an easy and fast way to build credit ...Just don't lend it out.

Beware of sky high interest rates.NEVER EVER NEVER lock those in they will eat your wallet alive.

Beware of Lenders/Creditors preying on the young and non-informed as all things glittering definitely is not Gold....


#Brain12 - Says,

Good to check in here..!!
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