Building credit
 

Any tips? This came up on Allans board, just wondering what everyone else says...

It's easier said than done for most folks, but it's really simple in concept.

The first step for most is obtaining a credit card. Once you get one, use it as often as you can but make sure you have money at hand to back it up. Then when the bill comes every month, pay it off or at least make the minimum payments. Do that for a while, then you can move on to store cards, gas cards and even short term loans like at certain stores. After doing that for a while, get a car loan or other such loan and do the same thing.

Most important things to remember are never pay late, and never exceed your limit.

Your ratings are then calculated and periodically increased depending on the length of you credit history, ability to pay, debt to income ratios and your age.

Good credit takes time to develop, it doesn't just happen. :)

I like building credit.. :D :D :D :D

truck loan
boat loan
snowmobile loan
Credit card signing at over $7,000 :eek:


Baja daze.. "never exceed your limit" I think I missed that advice :eek: Where were you 5 yrs ago when i got my first credit card :D :D I have no problem useing my credit card, it won't melt, its water cooled :D

If it cost .02 to **** I would have to puke :D

Another thing is to get a small personal loan for something and pay it off asap. When you get a loan and make current payments then pay it off it really helps. Also, DO NOT have more than 3 cards. Having too many cards lowers your credit score. When you apply for a loan the possible debt of your existing credit cards is figured as actual debt. If you have 8 cards with a total limit of 20k then you have 20k of possible debt. It does take time to build credit, Don't rush it. Also, find a small local bank that wants your business.

Just apply for a "Black" AE card they will hook you up!!!

Credit cards are nice, but ALWAYS PAY THEM OFF!!!!!!!!

LMAO :D :D :D

I wouldn't worry about it. If you do get a credit card....get a good one, not one with these outrageous fees. Pay your bill each month, no exeptions. I wouldn't waste a lot of time worrying about your credit....just take it slow and don't get anything that you can't afford or pay for in a month. I've heard several horror stories of people trying to build up credit by buying this or that and that only leads to big time trouble.

deal in cash and you don't need no stinking credit.

Agreed......:D

However, re credit........just don't f*ck it up. You don't realize when your young how important good credit will be later in life.......I learned the hard way...:rolleyes:

BLACK Amex yea that's a good starter :confused:

Trying to establish credit

Only use a CC for what you can pay cash for...

IE:

Dinner
Small Repair Bills
Gas
Nothing Big.. Sound Systems/Upgrades to boat or car.... Save and pay cash for that....


NEVER EVER have more than 2 CC Only one Visa or MC never have an outstanding balance more than 10% of the total available credit.

Apply for an American Express Green Card... DO NOT MISS A PAYMENT or they will hunt you down like a dog and kill you!..

Don't rent buy a condo or house.... Never take an equity loan.



Once you F up your score you have a ton of work to do to get it back.

I was told that paying you balance off in full each month does not build revolving credit.

Fightclub - great advice

I have a friend that lives off his equity line. I don't really understand it all, but I know eventually you have to pay that money back, not a way I'd like to live, but to each his own.

you don't apply son...your invited

Yep, and have to spend 150k a year....

If your talking about FICO or beacon scores your time on job and time at residence also affect your score. Job because potenitally your employment situation is unstable and residence because may get hard to find (ie collect on). Any recent moves or job changes will bring your score down, not much normally, but it will effect it. Also, car loans, paid on time, are a good way to build credit.

Paying the minimum on any debt is scary advice. Especially on a credit card. But you do have to use credit to build your credit. But you must use the credit WISELY!!!!!

If you are having trouble getting a credit card or personal loan, try a credit union. They are small, local and personal. They focus on building relationships and don't just look at credit scores. They will likely require that you open a savings or checking account with them.