How to build more credit???

[asaner85 10+ year member]

I currently have a visa CC, a CC from a clothing store, a cell phone plan and the home phone/DSL service under my name. Im planning on purchasing a property by the end of the year. How can I make my credit better? Should I sign up for one of those credit reports? With all these fourclosures I know getting a loan will be pretty hard even for someone with okay credit.

Thanks!!

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[Flipx99 5,000+ posts]

Well, only the CCs actually help credit...the other two do not as they are not reported to credit agencies unless you do not pay. You should get a credit report to ensure there is no unwanted activity on your account and get your score. I would buy gas or candy or something simple on the CC and pay the balance in full at the end of the month. You want to have activity on the account, but not paying finance charges. I would be especially hesitant about carry a balance on a store card that would not hesitate to charge you 25% interest. Otherwise, you only have time. Time to demonstrate you are responsible.

 

[blazeplacid 10+ year member]

Finance a car and pay extra a month on it

in a years time my crdit score went from a 620 to a 750

car payment is 400ish and i pay 500-600 when I can

there are other ways but thats what worked for me

 

[blazeplacid 10+ year member]

also the length of credit history is important

 

[ccrobbins 10+ year member]

You need to find a bank that will loan you money. I had to save a grand and deposit it first. After I did that I borrowed money on 90 day notes. After a year of that I could get what was called a sig loan, on my name only. I was able to get into a home with a really low rate because of that. Also debt to income has a bit to do with it.

 

[reid1boys 10+ year member]

Building good credit is not something you can do in 1 year. I got married at 18 and our 1st credit card was a Sears card. The only way we got that was by having a co-signer. Over time you just need to open accounts, use them, and make sure you pay them ON TIME. On your credit report you can get reported for being 30, 60, and 90 days delinquent. All of those will hurt your scores.

There is no secret way to do it, but it takes time. Ive now been married 20 years this Sept and we have more credit being thrown at us than I want. The best part is now instead of begging them for credit, I call them and tell them to lower their rates or ill cancel my account with them.

Getting and keeping good credit means that you are the one in the position to bargain. They know they need to compete to get your business, or you can just tell them to get lost and move on to the next financial institution.

Good luck

 

[ccrobbins 10+ year member]

With the right institution your credit can improve vastly in one year...sometimes less.

 

[Buck 5,000+ posts]

pay your credit card bills

 

[blazeplacid 10+ year member]

Building good credit is not something you can do in 1 year. I got married at 18 and our 1st credit card was a Sears card. The only way we got that was by having a co-signer. Over time you just need to open accounts, use them, and make sure you pay them ON TIME. On your credit report you can get reported for being 30, 60, and 90 days delinquent. All of those will hurt your scores.
There is no secret way to do it, but it takes time. Ive now been married 20 years this Sept and we have more credit being thrown at us than I want. The best part is now instead of begging them for credit, I call them and tell them to lower their rates or ill cancel my account with them.

Getting and keeping good credit means that you are the one in the position to bargain. They know they need to compete to get your business, or you can just tell them to get lost and move on to the next financial institution.

Good luck

I agree with you for the most part.

Credit card companies will give almost anyone a card now though

I got one right when I turned 18 and was careful with it,sure I bought stuff that I just wanted (sunglasses,new clothes,cell phone) but for the most part I kept my balance low and paid it on time

 

[BryanCain]

If you've managed to dig a ditch financially, the best way to improve your score is just start keeping good books and financials. If you have a low credit score this can more than compensate. And plus a it is very seldom a banker is presented with financials. It is like killing ten birds with half a stone. If you keep good financials you are going to know where you are anyway and not really care about a credit score. When somebody comes to me seeking to borrow Federal Reserve Notes, I ask them for two main things: their financials and credit report history. I'd much rather lend to somebody with good fiancials than an excellent credit score. Plus the discount window will not lend to an individual or institution without good solid financials.

 

[reid1boys 10+ year member]

I agree with you for the most part.
Credit card companies will give almost anyone a card now though

I got one right when I turned 18 and was careful with it,sure I bought stuff that I just wanted (sunglasses,new clothes,cell phone) but for the most part I kept my balance low and paid it on time

They do give CC out to young people more today, but the limits are very low. Lets say a 20 year old that doesnt have a house and limited income applies for a visa. They may get the card with a 400 dollar credit limit. Someone with an extended credit history, a house, and a steady income will get the card with an 8500 dollar limit and a MUCH lower interest rate.

My point is that it simply takes some time to get to that point. The older you get, the more money you make..... at leastwith the vast majority of people.