should i start to build my credit?
Question by dantheman0506: should i start to build my credit?
im 20 years old. gonna graduate with finance degree in 1.5 years with no debts and 25000 in savings. Should i worry about building credit history for a good credit score. and How?
Best answer:
Answer by AshSMASH
if you can get a credit card, use it to buy small purchases and then pay it off the next month.. keep doing this every month but pay it off early if possible.. and dont max it out. thats the best way to build your credit.. and it wont get you into debt, so if you can then of course attempt to build your credit just be careful.. the more places you apply for credit.. the more your score will go down.
Good luck hope this helped.
Give your answer to this question below!
Yes this is an excellent thing to build up. Just get a credit card or 2, and charge little stuff on it, then pay it off in full each month. There is other stuff you could do, but thats the easiest.
I worked in finance, and whoever is telling you to open a line of credit, charge something, and pay it in full each month is just wrong.
If you pay your balance in full each month, and you apply for another form of credit, your credit report may show a zero balance on the line of credit, which drops it from consideration on your current application for credit. Best bet is to get a card for a dept. store or gas station, charge say, $ 100, and pay $ 90 of it. Leave a small balance each month that, if you had to, you could pay in full in a single payment. That way, when you apply for additional credit, the credit line shows a small OPEN balance, AND a good payment history.
You should start building your credit. Its always good to use your credit card whenever you can and pay if off every month. You can find a perfect credit card for yourself at the following site. You might be eligible for a college student card. I say go for it!!