What is the best way to build up my credit?

Question

I'm 20 and of course I pay my phone bill and rent as well as electric and other utilities. But these obviously aren't helping my credit enough to even be able to consider buying a home. I heard a savings account loan is a good way but it would take me quite awhile to save up $2,000.00 in order to do that, especially with food and gas prices rising.. So what other possibilities are out there? Credit cards scare me but many are saying it is my only option.

Answer 1

http://articles.moneycentral.msn.com/Col...

Answer 2

1) Check your credit report regularly to check what lenders are saying about you and if anyone else's information could be mixed in with your report, either through a credit bureau mistake or because of identity theft; i.e. someone using your personal information to open bogus accounts.

2) Establish a checking and savings account. Lenders see bank accounts as signs of stability.

3) Understand the basics of credit scoring. 1) Whether you pay your bills on time. 2) How much of your available credit you actually use.

4) Piggyback on someone else's good credit. By being added to a credit card as a joint account holder or by getting someone to co-sign a loan for you.

5) Apply for credit whilie your a college student. Lenders are more willingly to take the risk usually because they hold parents as a liability if they can not pay.

6) Apply for a secured credit card. i.e. No appication/annual fee 24/7 security features.

7) Get a gas, departmental card. Just because they are easy to get.

8) Get an installment loan. Auto, personal, mortgage.

9) Use revolving accounts lightly but reguarly. Just make sure you don't charge more than 30% of the card's limit, don't charge more than you can pay off in a month, and make sure you pay off all your bills on time.

Answer 3

there are a couple of ways you could start building credit, you could get a small personal loan which you might need a cosigner or the best way will be getting a credit cards, you could get a credit card and use it for your every day expenses but make sure you pay in full at the end of the month that way it will show pay in full everytime the credit card company reports to the credit beuros. At the begining you will only be approved for the lower end credit cards but once you build credit in about 6-9 months you should be able to apply for a better card with better benefits such as free miles or cash back. Check out www.fastcardapprovals.com or fastcreditcardapprovals.com and go under bad credit section and you will find a few choices. Unless you are a student then apply for a student credit card this cards have no annual fee and lower rates.

http://www.fastcardapprovals.com/Bad-Cre...

http://fastcreditcardapprovals.com/

Answer 4

I have actually been trying to build my credit & was told by a credit counselor to get a secured credit card through my bank for like $300 & make a monthy payment on it & use it just a little every month to show that you are using it but paying it off successfully.

Answer 5

get a credit card and always make your payments on time

Answer 6

get acapital one card because it will take one year,to build it up and if you can pay your credit card for one year without any problems,than you are on your way to building a history.The reason they call it history is that it takes a few years to built good credit.Some people think that if they pay there bills for 2years that is a good credit.Some banks want a 10year good credit history.Remember that a lot of people don,t have a history until they are 30 or more.The main thing here is get a good education,then you have a excellent job with big bucks,benefits etc.Then you can do any thing in life as far a getting a loan for a new home.Then when you have a home you will be more likely to keep it because you can afford it.As far as the saving up you should always save for a new home.I am saving to,You need at least 50,000to 100,000 down these days or you will have a 40 year mortgage.Well good luck on your saving for a home.The main thing is get a good education first,if you have that ,then get the good job next.If you have both then your well on your way.

Answer 7

Utility bills, phone bills, and rent don't even go on your credit history (unless you are delinquent)..

The best way is to get a credit card with a small balance and use it.. Pay it off whenever you get the bill every month and DO NOT go overboard! Or, you could get someone to co-sign for a small personal loan that you could take a little while to pay off.

I'm sorry but you are far from buying a home.

Answer 8

Avoid friends in the  Mafia

Answer 9

you can get a credit card but with a low limit like maybe $300-$500 limit. you can also start out at a jewlery store or furniture store by buying stuff on credit but start small then work your way up. never be late on a payment and if you can pay it off faster then that always looks great. stay away from those rent a centers or rent to own places cause you will end up paying double. good luck.

Answer 10

ask for a grant from the government to pay your bills

(it works!!!!!!!!!!!!

Answer 11

Unfortunately, credit cards are one of the top methods of establishing your credit history. Of course with any credit cards, you have to be very very very careful. I am only 18 and I have four credit cards already, bad idea BUT I have been paying off my bills on time consistently and that is one of the major keys of getting a high credit score. It matters more that you use only 30% of your credit limit, the amount the card company gives you. The credit company reports your payments and usage monthly to the three credit bureaus: Experian, Transunion, and Equifax. I've provided some articles from MSN Money. Good luck and build up some solid credit history! :)

Answer 12

Credit cards are scary, but if you pay the full amount due and on time, you'll build up your credit and you won't have to worry about finance charges.