How to Build credit?

[ryansblaster]

I turned 18 a few weeks ago and I'm looking for a way to earn credit. Anybody know of a credit card I could get approved for? I have to pay for insurance phone bill and gas so I might as well use it to earn credit. This is not to buy vdeo games or car parts etc just bills I already have to pay I am very responsible with money.

[SpasticR450]

Screw the card! Credit cards are bad! Take out small loans from the bank that you can make payments on. And pay them off. Thats how I did it.

[CJM]

Credit cards can be tricky. They will sign you up for a student card if you have a bank account usually.

I prefer cash or debit but keep 2 credit cards just incase.

[Lasher]

To build credit you need to pay all your bills on time.
Establish a credit history (of paying on time)
Carrying a low debt percentage. Some have said to carry about 10% of your available credit. So a $100 balance on a $1000 credit card.

Late payments...bad
No credit history...bad
Collections...bad

[MX450]

I started by getting a store card (macys), got a credit limit of 100 bux, bought some socks and stuff and paid it off. After about a year I was approved for a bank of america student credit card with a limit of 500. Now i can get just about any card i want with a few thousand credit limit.

Here is what you want to do. Dont listen to people that preach against credit cards, because after all, one day you are going to need to buy a house or a car and you are going to need credit. The best rule of thumb is try to not pay any interest. I have had credit cards for about 5 years now and i have NEVER paid one cent in interest! Only buy things you know you can pay off when the bill comes!! Stick to things you are going to buy anyways, then pay the bill.

NEVER EVER make a late payment, NEVER. Always on time and you will build good credit.

[ridgeracer]

A store card might be your best option. I know they changed a few laws regarding credit cards which makes it a little harder to get one until you turn 21.

And I don't have specifics but I know some credit unions will allow you to take out loans based upon money in your savings.

[firefighterjosh]

Cell phone helps
Also a credit card is a awesome way.

I use my CC for gas and small purchases, pay it off every month and no extra fees.

I have a credit of 749 when I bought my truck, I screwed up and paid something twice, bounced a check blah blah blah. Took me two months to get everything caught up and figured out.

Long story short my credit dropped to 580! :eek2: :eek2: :eek2: Just in 2 months because someone reported me (still pissed about that as I only missed one payment by mistake)

Make sure you pay your bills on time, Im almost back to 700 after 2 years of trying:mad:

[86 Quad R]

as mentioned..... a store credit card is a good way to go. i/e wal-mart, homedepot, low's ect. in conjunction with having a cell plan in your name, a small lil personal loan co-sighed ect.

i personally have an outstanding credit but am one to pay cash for most stuff throughout the year but that can be a bad thing as an inactive credit is as bad as not having one at all. what i'll do is go and charge a bunch of stuff at say home depot(taking advantage of the 12mnth no interest) for home projects and pay it off promptly. i'll also go to an appliance store(offering a 24mnth interest free, usually that goes through a local tower loan) when in need of say a refridge and pay it off before hand.

the examples listed above are great tactics but you best not be late or you'll be hit with the EXTREMELY high late charges and/or be forced to pay the full amount with interest. just my .02 :cool:

[ryansblaster]

so could I get approved for something like a shell gas credit card?

[firefighterjosh]

Originally posted by ryansblaster
so could I get approved for something like a shell gas credit card? \

Yes