Building credit
01-26-2004 | 02:12 PM
#2
Platinum Member
Joined: Jun 2001
Posts: 21,346
Likes: 10
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.
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.
01-26-2004 | 02:31 PM
#3
Registered
Joined: Oct 2000
Posts: 3,372
Likes: 0
From: On the river
I like building credit.. 
truck loan
boat loan
snowmobile loan
Credit card signing at over $7,000
Baja daze.. "never exceed your limit" I think I missed that advice Where were you 5 yrs ago when i got my first credit card I have no problem useing my credit card, it won't melt, its water cooled
If it cost .02 to **** I would have to puke
truck loan
boat loan
snowmobile loan
Credit card signing at over $7,000
Baja daze.. "never exceed your limit" I think I missed that advice
Where were you 5 yrs ago when i got my first credit card I have no problem useing my credit card, it won't melt, its water cooled If it cost .02 to **** I would have to puke
01-26-2004 | 02:50 PM
#4
Registered
Joined: Aug 2003
Posts: 1,481
Likes: 0
From: Boston, Ma
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.
01-26-2004 | 03:26 PM
#8
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Joined: Mar 2002
Posts: 1,135
Likes: 0
From: Brandon, MS.
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.
01-26-2004 | 03:39 PM
#10
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Joined: Jan 2001
Posts: 2,808
Likes: 0
From: New Hampshuu !!
Originally posted by Crazyhorse
deal in cash and you don't need no stinking credit.
deal in cash and you don't need no stinking credit.
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...
