whats the best way to build up your creadit?

[talon2nr7588 10+ year member]

i just got a cc about 3 months ago and i want to build up my credit . what is a good way to do it?

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[tEh koRnDog 5,000+ posts]

make your payments on time, dont max it out

Im 19, and i recently got myself into some major credit problems

be responsible, I unfortuanetly wasnt and im regretting it.

 

[iceteebone 5,000+ posts]

i just got a cc about 3 months ago and i want to build up my credit . what is a good way to do it?

isn't obvious? do we really need to spell it out for you? have you no common sense?

 

[Scoobydoo 5,000+ posts]

use it to pay for gas or something and pay it off every month

dont spend more than you can pay off each month, once you get into revolving debt it is a ***** to get out of

 

[Prowler573 5,000+ posts]

It's a PITA that you have to put yourself in debt to build credit but nonetheless it's true.

The best advice I can give you is do not see your CC as a "license to shop" and get yourself overextended. Buy things that you know you can afford to pay off when the bill comes and nothing more (if you can help it)

Just because you're not out any cash at the moment doesn't mean you won't have to pay the piper sooner or later.

I put no more than $200/month on my Visa because I know I cannot afford to pay it off at the beginning of the month when the bill comes in after paying all my other monthly expenses (rent, groceries, car insurance, utility bills, etc). Consequently since I've never made a late payment or paid just the minimum allowable payment my credit rating is currently 807. //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif

 

[Scoobydoo 5,000+ posts]

oh yeah and NEVER bring you CC to a bar

drinking+credit+friends= bad idea

i went from $0 debt to about $1500 in one summer like that, with nothing to show for it but a beer gut

 

[Benilson09 10+ year member]

To build up your credit score you need to establish credit history both revolving and installment wise. Use your credit cards lightly and keep you balance low. Look into taking out a small loan of around 300$, put the money into a savings account and leave it, make your payments on time everymonth. Once that gets paid off, just stick w/ your credit card for a while and don't open new debt or have your credit pulled. That will also bring your score down. PM me sometime if you need help I have worked in finance for a while.

 

[bigbangtheory 5,000+ posts]

It's a PITA that you have to put yourself in debt to build credit but nonetheless it's true.
The best advice I can give you is do not see your CC as a "license to shop" and get yourself overextended. Buy things that you know you can afford to pay off when the bill comes and nothing more (if you can help it)

Just because you're not out any cash at the moment doesn't mean you won't have to pay the piper sooner or later.

I put no more than $200/month on my Visa because I know I cannot afford to pay it off at the beginning of the month when the bill comes in after paying all my other monthly expenses (rent, groceries, car insurance, utility bills, etc). Consequently since I've never made a late payment or paid just the minimum allowable payment my credit rating is currently 807. //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif

I remember when I had that good of a credit rating. I could just about get anything and I think I did, lol! I was one of those ones where I had to get myself in debt to get that good rating. You dont need to do that to get it high though. Like others have said, just make your payments on time and pay more than what the minimum is. I usually pay over 20 bucks on the minimum.

I am currently at 620, but was bankrupt not even 2 plus years ago. So not all that bad.

 

[got_focus? 10+ year member]

how and where are you guys getting your credit scores?? Is there any place online that is TRULY free?

 

[Prowler573 5,000+ posts]

My credit qualifies me for purchases considerably more expensive than I could reasonably payfor.

I think creditors should put much more emphasis on someone's actual income than they do in just their credit rating...

 

[Benilson09 10+ year member]

how and where are you guys getting your credit scores?? Is there any place online that is TRULY free?

Yes, a lot of places will ask for a card # even though you get a free report. If you enter a card number in, read all of the terms and conditions. Normally you get access to your credit report for 3 months, just cancel your subscription in a couple days.

 

[Benilson09 10+ year member]

My credit qualifies me for purchases considerably more expensive than I could reasonably payfor.I think creditors should put much more emphasis on someone's actual income than they do in just their credit rating...

Very good point. The scoring system that most banks use has a lot of flaws. Now, it seems like more lenders rely on the 3 digit number so much that they are slowly losing abilities to read and fully understand a credit report and then base a lending decision on they're findings.

 

[bigbangtheory 5,000+ posts]

My credit qualifies me for purchases considerably more expensive than I could reasonably payfor.I think creditors should put much more emphasis on someone's actual income than they do in just their credit rating...

Word!

 

[Safe-N-Sound215 10+ year member]

how and where are you guys getting your credit scores?? Is there any place online that is TRULY free?

http://www.annualcreditreport.com it's set up by the three reporting agencies and it's free once a yr. You don't need a c.c.

It's the safest one out there IMO.

 

[pitbull12888]

im tryin to build mine up to.. i need some so i can get a loan or a bike. I got a $300 cc and spent like $280 on it, made 1 payment like almost a month early so far lol. Waitin for the 2nd payment to be due.

 

[Relax 10+ year member]

I worked in Auto and Home Finance for awhile. I know a bit about what they look for when approving you for those kind of things, and what looks good on a credit report.

The main thing is to prove to lendors you can handle paying for something, on time, every month, in full. So use your credit card, wait for the bill, then pay it off fully. If you say, transfer a balance to the card and use it, it looks like you are just managing a checking account. Wait for that bill to get to you, then send your payment.

Next, there is usually an argument about wether or not revolving debt is okay. Some people say havign revolving debt for a month shows you can handle it, whereas others say never let it get to that point. I am more of the later, believing you should pay your bill every month in full.

The next thing is type of debt. School Loans are better then Car Loans. the reason? School loans will produce more money later, whereas cars just depreciate. Thats the difference in good debt and bad debt. Good debt looks better and will make you money later.

Its also a misconception that having your credit pulled will lower your score. It does lower it, but only when its pulled excessively. Pulling it once a year to double check your score and how everything is reporting is fine. And when its pulled several times while shopping for a car- thats also fine. Just try to avoid pullign it more then every 6 months for no reason other then to look at it.

 

[yne721 10+ year member]

you spelled credit wrong lol