How do you build credit??

Question

I just turn 18 & graduated,and now I wanna move out..alot of the place do a credit check...and since i'm newly 18 and have no credit..I can't get a place...does anybody know how to build credit fast without credit cards??

Answer 1

I had no credit a year ago. All i did was get a pre paid credit card from capital one. I had to give them 300 hundred deposit...which they will give back to you. My credit limit was only for 300 at first. Then they bumped to 900 and now i have 2 credit cards for like 3000 credit limit. My credit is awsome now. Just make sure you pay it...so you don't end up in trouble!!

Answer 2

Starting a good credit history has never been as important as it is today. If you're just starting out, you have a once-in-a-lifetime opportunity to build a credit history the right way. Here's what to do and what to avoid.

1 .Check your credit report

2. Establish checking and savings accounts.

3. Understand the basics of credit scoring

4. Piggyback on someone else's good credit

5. Apply for credit while you're a college student

Below is an reference site where you can find some more useful information.

Answer 3

I know all about this, not only going through this when I started out myself, but also in my job as a credit analyst and underwriter of a credit card company.

How I started out was that I had bank accounts with Bank of America and since I was a good customer, it allowed me to use a portion ($300) of my savings account as collateral so that I could open a credit card with a matching limit. The card was intended only for emergencies, but I did make small puchases(max $20) and paid them off in full on time every month, to show that I kept it active and in good standing. I also used more of my savings to as collateral to raise the limit, and 9 months later, I was offered a regular credit card and refund for the portion of my savings I had used for collateral. 3 months later, I started getting offers for credit in the mail, and I was able to get an apartment.

Later, I learned that by far the easiest way to build credit without getting in trouble. Although you can build credit without credit cards, it's nowhere near as easy. Some smaller banks that offer "secured" loans that work the same way as the secured cards but the difference is that you're making set monthly payments and you don't get a piece of plastic.

Another thing that you can do is if you have a cellphone bill or some kind of bill you pay every month, you could enroll with PRBC, an alternative credit bureau designed for people that are having trouble building credit. Cell phone, rent, utilities, insurance payments that normally don't report on the 3 major bureaus as credit, reports as credit with PRBC.

I posted links to PRBC and some secured cards as well.

I hope this helps,

good luck & thanks for reading!

Answer 4

Get a secured credit card. This is the easiest way to build credit history. The secured credit cards use cash deposit as collateral and you can't spend more than the deposit. You still have to pay your balance on time and in full and you will be building credit history.

Answer 5

What that other person was referring to is called "Secured Debt." It's called secure because the money is already in there. You give them $500 and you have $500 to spend. but you still have to put it back.

Everyone starts of with a credit score, and i'm sure you can get a place if someone co-signs the lease for you, like your parents. Do not get department store credit cards, they have some of the highest interest rates!

I would suggest having the secured debt for about 2-5 years before you get an actual credit card. When you do keep the balance near 30% of your credit limit. Again, don't use it to buy the necessities, use cash!

Credit cards & debt are for major purchases, like furniture and vehicles. Even then you should still have a large amount to give as a down payment, that will lower your interest rate, plus the amount you need to finance!

GOOD LUCK!