I am 20 yrs old, how do I start building my credit?
352144
1. Cell phone\n2. Car finance at least 18K from a reputable dealer\n3. Anything more then 1 credit card is a waste
175499
Since everyone who is going to offer you credit uses credit scores (many based on FICO), your best bet is learn how it works.\n\nThe link below has a lot of information about how your score is put together, and what you can do to improve it.  \n\nGo right to the source!
469706
A person's credit rating is built upon historical demonstration of good financial habits and responsibility.  The simplest things to do to build your credit are:\n\n1. Open a savings account and make regular deposits to it, no matter how small.  You demonstrate a savings habit and built a cash asset.  The financial principle is called 'Pay Yourself First'.  You worked for that money, you should take the first cut.  Save at least 10% of what you make and don't touch it; always use that ever-growing-wad to make yourself more money.  3 to 6 months of your current income in savings should be your first goal; just in case something unfortunate happens at work. Once you hit that, start looking into good mutual funds; another cash asset that will add to your net worth and your credit score.  Don't forget, that 'wad' is always earning you interest and getting bigger.\n\n2. Make payments to your creditors ON TIME.  A number of late payments, or worse, defaults on loans, can really screw things up on your credit report and you'll appear to be 'a bad risk'; no matter how nice a person you are.\n\n3. Open and manage a rotating credit account so you can demonstrate that you can manage credit properly.  This will help raise your credit rating.  If you don't have a credit card yet, apply at a gas station for a card; ensuring there is no annual fee.  If you're employed, it's very easy to get one of these, the credit limit is usually only a few hundred dollars, and you can easily use it for something that you're likely paying for each month anyway.  Yes, you could get one from a department store, but its more likely you'll have a 'new shoes' emergency or the like.  Stick with the gasoline necessity until you are comfortable handling credit properly.  To budget your expense, keep the receipts for your gasoline for a month or two and average how much you spend on gasoline in a given month.  Set the money aside in an envelope when you get paid, and at the end of the month when your gasoline bill comes, deposit the money and pay off the balance.  Paying off the balance each month avoids any finance charges and ensures that having the card (and building your credit score) won't cost you a thing.\n\n4. Pay down your outstanding debts.  Once you are carrying enough debt to impact 50% of your cash flow each month, creditors start getting itchy about your ability to repay any additional amounts.  If you have several cards and are carrying balances on them, target the highest interest rate card first and pay it down to $0.  Take them in order until you're out of debt.  Then use the lowest rate card and carry a small balance.  I use one card for gasoline and monthly services then pay off the balance each month.\n\nPeople with good credit ratings get lower interest loans because they've proven themselves a good credit risk.  You'll appreciate that when you apply for your next car loan or your next mortgage.  One or two percent over a 30-year mortgage can save you thousands.
640064
This is one of the most common questions on this board.\n\nHow do I build/establish credit?\n\nFirst off you need to be educated about how credit works in the U.S.  Every credit decision a lender makes is driven by FICO credit scores. You can go to www.myfico.com and look in the Credit Education section to learn how FICO credit scores are determined. To build your credit you have to place positive credit items on your file that will report positively for 6-12 months minimum. If you want your credit to be in the Excellent category (FICO score 750+) then your goal should be to have 3-6 revolving accounts(dept. store, gas cards, Visa. etc.) WITH NEAR ZERO BALANCES and 1-2 installment loans(car, mortgage) that are reporting positively.\n\nI would start out with a Bank of America or Wells Fargo secured Visa card. Both banks have great programs with low annual fees, low starting amounts ($300.00) and no junk fees. After 12 months of positive on time payments you will graduate to an unsecured status. Then you will probably be approved for other cards such as dept. store and gas cards.\n\nGood Luck
1069864
The best way to build credit is get a loan and pay it off. You could start by betting a store credit card. If your making payments to rent to own, then you have a line of credit with them and that should help.
292764
I dont think there is any "quick" way to build credit.  The way I started my credit was I got a loan from my bank for 2000.  I put that money in savings and used that money to pay on it every month.  It takes about six months for it to appear on your credit report, my suggestion is to have it paid off in the 6 months so that you are not paying as much interest on the loan.  This will also allow you to establish credit with the bank and if you ever need them again they will take into consideration that you paid off the last loan they gave you with no problem.  Another way is by getting a department store credit card.  make a small purchase on it a month, and every month pay that purchase off.  If you are denied the credit card, wait at least 3 months before applying for another one.  Too many inquires on your credit will only hurt your credit score.
879250
The above information is good.  However, please remember not to CLOSE your creit card accounts.  Keeping them with a low balance (or zero balance) is fine.  Despite popular misconceptions, open trade lines (with clean history and low balances) do NOT hurt your credit.  Instead, they establish good credit history which is important for your score.  Below are some general tips for building credit:\n\nDO NOT:\n\n1. Do not open unnecessary credit card accounts or other loans.\n2. Do not close existing credit card accounts.\n3. Do not let individual credit card balances exceed 30% of the credit limit.  Two credit cards each at 25% of the credit limit is much better than one credit card at 50% of the credit limit.\n4. Do not allow unnecessary credit inquiries – meaning, you should not have people pulling your credit unless there is a very good reason.\n\nDO:\n\n1. Do make timely payments on all mortgages, auto loans, and credit cards.\n2. Do request higher credit limits on your existing credit cards.\n3. Do make sure that each of your credit card accounts report the credit limit to the credit bureaus.
747130
First, it is extremely important to fix any errors on your credit report.  You can start by getting your free report from the three major reporting bureaus from:\n\nhttps://www.annualcreditreport.com\n\nClark Howard is a nationally-syndicated talk show host who talks about things like this a lot.  You might find some helpful advice in the forums at:\nhttp://clarkhoward.com\n\nOnce you get any incorrect information off your credit report, you can start looking at ways to build up credit by having a small balance credit card and always paying it off each and every month.  You may need a parent or someone to co-sign for it as you are just starting out.\n\nI hope this helps point you in the right direction.
666560
The reasons to have good credit are simple. If can affect you in literally hundreds of ways.\n\nGood credit \n\n- Lower interest rates for loans.  Home, Car, etc.\n- Qualify to by a home (FICO score)\n- Employers check credit ratings\n- Housing (Apartments) managers check credit before renting\n- Setting up utility payments (no deposits)\n- School loan rates can depend on your credit\n- It can take YEARS to repair a bad credit history and in the meantime you can be denied credit or end up paying MUCH higher interest rates because of poor credit.\n\nHow do you build good credit?\n\n- In many ways it is advantageous to have no (negative or positive) credit, because you can more quickly obtain new credit.  For example, you can immediately enter most department stores and immediately open an account.\n\nDepartment store cards can then lead to major credit cards, such as MasterCard, Visa, Discover or American Express.  Do not go wild with these cards, however.  Do not keep a balance past the grace period, so remember to pay off your balance each month.  Remember that your goal is to establish a credit history and a strong credit grade.  Maintaining a balance is actually a negative, albeit a minor drag on your grade.\n\nYou should try to limit yourself by maintaining only two department store cards and perhaps another two credit cards.  Do not succumb to the credit card temptation. \n\nSecured credit cards are a great way to establish a credit line whether you have no credit or damaged credit.  Secured credit cards are regularly issued MasterCard or Visa credit cards, which are secured by a deposit.\n\nTo establish a secured credit account, for example, you would set up a deposit account with the issuing bank.  The minimum could be as low as $100, depending on the bank.\n\nYou will then be issued a credit card, with a credit line normally equal to your deposit.  In most cases, you will receive interest on the deposit account.  However, if you ever default on your credit card, the bank can use your deposit to cover their losses.\n\nIt is also a good incentive to control your credit usage and minimize your balance.\n\nBut above all, DO NOT OVEREXTEND YOURSELF, PAY YOUR BILLS ON TIME AND AS CLOSE TO IN-FULL AS POSSIBLE. Avoid splurging and using the card when you can't afford to.
473707
you need someone to co-sign for you a small loan at the bank. That will start your credit. As long as you pay it on time every time then you'll have good credit.
740116
Obviously pay your bills on time, but then what? \n\n\nBuild, Build Build!!!! \n\nHere is a fantastic article on exactly that: http://www.expert-credit-advice.com/building_credit.htm\n\n\nThe piggyback technique will get you going in warp speed if someone is nice enough to help you. \n\nI would also reccommend  getting this card: \nhttp://www.goeufora.com/418121496892 \n\n\nIts called the Eufora Credit Builder and it reports to the credit bureaus as an installment loan which is unique for a loaded value card.
63521
Actually, you are already on your way. Simply being aware of the importance of good credit - and then making a plan to maintain your credit is a big step. \n\nThe first thing you need to do is get a recent copy of your credit report. Go to one of the major credit bureaus (www.equifax.com, www.transunion.com, or www.experian.com) and buy a report WITH scores. If you've recently been turned down for credit you can request one (in writing) from each of the bureaus for free. You goal is to get your score above 700. If you have any loans - you must get those current. Do this BEFORE you pay any accounts in collections (if you have those). You'll also want to get up to three credit cards with balances of at least $300. Use the cards once per month to buy something small - and if you need to, give the cards to your parents so you won't spend on them. Keep a very small balance (not zero) on the cards. \n\nDo this and you'll be in great shape within 12 months.\n\nBe well.
139905
Credit is a notion concieved by the Devil.. If you don't have any debt, don't start.. You'll get so far behind.. You'll still be paying on it when your kids graduate from high school.. \n\nIf you can't afford something. Don't buy it. If you need assistance. Contact a religous institution i.e.; church, temple, mosque or shrine. Request assistance. Go to your local medical clinic and ask to sign up for medicaid. While you're there ask about food stamps. \n\nYou don't want to start any kind of credit. It's the worst thing anyone could bring upon themselves.
803600
do not start your adult life by having too many credit cards\n\nThis can lead you to ruin later on.\n\nBe realistics, just get one and work hard.\n\nDo not buy something that you cannot afford, just beacsue you have a credit card
1091396
You can greatly improve your credit, yes. There is already a good answer on here for this, and remember: STAY DISCIPLINED!!!\n\nYou can do it!
930017
You can build credit very fast by using a method called piggybacking. \n\nYou are simply asking someone to add you as an authorized user and all of their payment history is added to your report. \n\n\n\n\nRead this article that teaches it: http://www.expert-credit-advice.com/building_credit.htm\n\n\nAnd its not a scam, its free but It requirers the trust of someone though...
1169145
Sorry homey. I look at credit reports all day. You can pay it till your blue in the face and no one cares. Credit is when you OWN something (like your house, your car, the shoes you bought with your credit card) and pay it off later. You pay your rent UP FRONT for the next month. If you don't pay, you get your ass kicked out onto the street. The best way to build credit at your young age is to purchase things on your credit card that you ALREADY HAVE THE MONEY FOR and pay it off right away. You're max will go higher and your credit will too. Don't ever keep your card higher than 50% of your limit for too long. If you can get someone to co-sign for you right now (like a parent) and you buy what you want and pay it off, that looks good too. It's a lot harder to build credit than it is to knock it down. It just takes a while. Your young I'm guessing- so heres the best advice I can give you. Care more now about what your credit score is and what's on your report than what it can get you. You can ruin your credit now by buying a 2000 dollar plasma and then it will hurt you a lot when you go to buy a $300,000 home.