Question by david_rosburg: What id a good way to build credit?
Best answer:
Answer by Tifanie
get a store credit card, then u can only use it in one place ex. you wont be tempted to use your JCpenny card at walmart.
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Get about 4 to 6 cards, use them and pay them off. Run a small balance occasionally.
my credit was shot so I opened up a secured credit card from citibank (Im sure other banks offer them too). i gave them $ 500 and that was my limit, and this way if you dont pay off the credit card they already have their money. when i closed it they sent me back my $ plus interest and i was getting lots of offers for cards from other companies. be careful and good luck
Get a credit card, with a maybe $ 300 limit. Buy something small , Like a pair of jeans or something once a month and make sure you pay the bill on time.
It’s a quick and easy way to build up credit.
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Ask for a small loan, pay bills on time, apply for a credit card such as those provided by store chains (example Sears, JcPenny etc)and pay back monthly.
Never borrow more than you can afford to repay.
Always pay the full balance on your credit card(s) each month.
If possible, pay your bills EARLY, but NEVER pay them late.
Pay your bills on time. Even one day late could bring down your score by 30%. Having joint accounts with your spouse could also bring down your score.
I’m assuming from your question that you are just beginning get credit, and haven’t destroyed yet. Right?
The better question to ask is “how do I improve my Credit Score?”.
Credit Guru, a regular poster here, gives an excellent site to research this at http://www.myfico.com. Below is a link to some downloadable brochures that they offer that will help you out.
Take the time to study them, they are excellent.
Apply for as many credit cards as you can (But use only up to 50% of your total credit at all times, the lower the better)