how does credit score works? need a good credit card too!?
828425
To get a good credit score you need to have credit. One good way to get a higher rating is to have a revolving credit card, or if you buy something on installment, make your payment every month and never be late. A few months before the installment note is due, pay it all off. Don't get credit cards where you must pay an annual fee in order to have the priviledge of charging with them. If you have a really bad credit card, close it, but don't open and close too many cards. If you have credit cards, put them away and don't use them. If you open and close credit cards it can adversely affect your credit rating. Do not take out credit cards with department stores, even if they offer discounts on your purchases. In fact, they will lower your credit rating. If you have them, close them, If you want to charge in a store it's better to use a regular credit card such as Mastercard or Visa. Be careful when you apply for loans because every time you apply for a loan the lender checks your credit rating. If you have too many inquiries, that can lower your credit score. If you are about to purchase a vehicle or even a home, shop around for the best interest. If you check with numerous lenders that check your credit rating, it won't lower your score because it will show that you are shopping for a particular purchase and it is good to look for the best interest rate. Once you have credit cards, it's best to keep them open, believe it or not, because if you go for a loan the lender will see that other lenders consider you a good risk. (Maybe it's because they know that if you decide to max out your credit cards and leave the country, there will be a lot of other lenders hunting you down besides them!) If you are just starting out and don't have much of a credit history, go to the bank you bank at and ask for a credit card. They will likely give you one with a low credit limit, such as $200.00. Charge on that card and pay the monthly payment on time. Before long you will have a history of whether you are a good credit risk. If you go to annualcreditreport.org you can get a free credit report once a year. They have information on their web site that will tell you  how to improve your credit rating. Put the credit cards that you already have away in a safe place. Just don't open and close them and open new ones. Use credit cards, but always pay them on time, or at the end of the month to avoid paying interest. Good luck.
1059603
I have answered this question in a 5 part series. There are a few items that can be done to build credit. Here are some quick ideas:\n\nThe fastest way is to have a family member or friend put you on a credit card of theirs as an authorized user. This allows the history of that account to report to your credit as well, but you never are in debt. (Just be careful that the account you are added to is a good one!)\n\nHowever, this is not a long term solution for good credit... try these for solid established credit over the long haul....\n\nOpen a Credit Union account and get them to provide a secured loan against your savings. If you have bad credit, most traditional and national banks will not give you a loan. They usually want good credit for that.\n\nGet a secured credit card and only use it for gas purchases, once a month and pay it off each month. No debt, but always paid on time... does wonders!\n\nBuying a car can help, but you will have a very high rate with limited or no credit.\n\n\nCheck out the resources below for all the details and more ideas.
467109
the best for me is "my credit keeper" 9.99 a month and it gives you all three credit bureaus and credit scores along with a scoring calc "EX. if i get another card how will effect my score" plus it gives you a explanation on why your report is the way it is
23261
There is no clear cut answer to this question. Your credit score is not good at all. No matter what card or loan that you apply for, you will end up paying higher interest rates. \n\nThe best way to get lower rates is to increase your credit score. To increase your score, pay your bills on time, stop charging as much as you do now, and try to pay off as many cards as possible.
973880
False. It takes time to build your credit score. If it were that easy, everybody would be doing it.
429702
get a job, then try and get a store credit card - like from target or walmart.  if you purchase stuff on that and then pay it off on time, you'll establish good credit.  but be careful about just applying for tons of regular credit cards.  each time you apply, if you get rejected, it can damage your rating
284714
You must be 18 years old to get a credit card, unless you have someone co-sign it.\n\nSince one of the major parts of your credit score involves how long you have had credit, many parents are starting to get very young children credit cards.  They will occasionally put a charge on it, then pay it off.  By the time the kid is old enough to get a car, they have a decent credit rating.\n\nSounds funny, but when I bought my first car they almost turned me down because I had no credit history!  I had a very good job at the time, but was still living with my parents.  Then I went to get a home, same problem.  The mortgage officer decided to just let me have it based on my income.  I had no credit history to work off of! \n\nSo get your new-born signed up!
42721
Getting good credit is not an easy road. Whether you choose to get a Credit Card, A Store Revolving Credit Card, or even purchase a car, you've got to be very very disciplined. \nI suggest never purchasing anything with a credit card that you couldn't with your bank card. At the end of EVERY month, pay off the entire balance.\n\nDo not apply for many credit cards. Find the credit card with the best terms and interest rate, apply once, and watch it carefully. \n\nYou're Credit Score is determined by your credit limit, your credit/debt ratio, length of time of your credit history, payment history, credit inquiries, etc.\n\nI suggest checking your credit report for free. You can check it once per year per reporting agency. I suggest checking one agency every 4 months (=12 months). Checking your own credit report does not hurt your credit score. If you purchase a score with your report, usually they'll give you suggestions to improve your score.
1133903
I would not worry about it.  All a credit score does is say how in debt you are.  People with good credit scores are just as bad off as people with bad scores.  My goal is to have no record on file, this will mean that I wont owe anyone.
621526
If you want to know how the credit scoring system works...go to the source.\n\nhttp://www.myfico.com\n\nThis is the home site for the folks who developed the FICO scoring system.  It contains information on how it's put together, tips on how to improve it, lots of other educational info.\n\nThey also can sell you your credit score, but the neat thing is it will also include a detailed explanation of what may be keeping it low, and what you can do to improve it.  It's very specific and may help you a lot.
336408
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 720+) then your goal should be to have 3-6 revolving accounts(dept. store, gas cards, Visa. etc.) 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\nP.S. Stay away from crap like entrustsystems.com. It is a major ripoff and DOES NOT HELP your credit. Also, most "pre paid" debit cards are a rip off for the consumer. Just get a checking account with a VISA debit card. \nGood Luck
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
763474
they have cards especially for students, I used to work for a company that processed credit card apps over the phone.\n\nkeep applying, you will find one make sure you find out what the apr is, annual fee and possible participation fee.  \n\nif you cant get a good apr I think the highest you should go is 9% then get one for now to build your credit it may not be great but if you pay it well you can get a better one in the future.\n\nI had bad credit then paid alot of bills off. i finally could get approved with first premier bank.\n\n9% fixed apr, but lot of yearly fees.  I am going to get a better one in a couple of years when this one looks good. \n\nThats how credit works!
809479
THE BEST WAY TO ESTABLISH CREDIT IS TO OPEN A BANK ACCOUNT AND TO KEEP IT IN GOOD STANDING.  CREDIT CARDS KEEP YOU IN DEBT IF YOU DO NOT PAY THE BALANCE IN FULL EACH TIME YOU GET A STATEMENT.
207211
A credit card is a card that you can use to pay for your purchases and promising to pay the money in installments or in full. They are loaning you money upfront (up to your available credit limit) and they are going to let you pay the money within the grace period (25-35 days) or start incuring interest charges. Credit Cards are unsecured loans (which means you don't have to have collateral) and some have extremely high interest rates (some are 9% if you have really good credit and others are up to 27%). In life I believe it is necessary to have one because to apply for a loan for a house you need credit. You need to have a good history of paying back on time, not having a lot of debt, etc... To build up your history, you need a credit card. Get a credit card and just charge one thing per month to start building up your credit. Pay it off in full each month. The more credit you have the less your interest rate may be and the more of a loan you can apply for. The uses are everything! You can stop worrying about having enough cash.\n\nTo get a credit card, you need credit. Where do you get this credit to start with? Well, you can do one of the following:\n1) Get a credit card at a local bank that you have accounts with. Small banks are extremely friendly and can help you build up your credit score. \n2) Get a secured credit card. That means you have collateral. This builds up credit while giving you money management skills. \n\nYou need to be 18 to apply and have a regular income.
1065449
FICO scores are not used for the purchase of automobiles.  Beacon scores are the determinant method.  Your bank, credit union or other auto finance company will pull credit on you and assign a score.  Different lenders have different thresholds.  The better the deal you get for financing, the higher treshold you'll have to meet.  620 is usually considered the the bottom of the best tier of creditworthiness.\n   The fastest way to increase your credit score is to NEVER charge on any card more than 50% of the high limit.  30% is even better.  Installment accounts that are near 10 months or so induration, should be paid to within 10 months and they will no longer count against your credit.  Never make major purchases within the first 4 months that a new line of credit is established.  Accounts older than 4 months with low balances will drive up your credit scores.
269229
You should absolutely work to establish a good credit rating.  Apply for a small, low interest credit card.  Use it once or twice a month to make small purchases and pay it off in full.  By doing so, you are establishing a credit history to prove you are trustworthy.  Without that history, lenders won't know anything about you and therefore, will not give you money.