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.
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.
