Could I build my credit history this way (see details)?

Apply for a credit card with 1 year 0% Introductory APR. When the intro APR runs out, apply for another card with the same 0%introductory APR for another year and repeat. This way, I pay no interest.

No! The way to build credit is to get the card and buy something and pay it off. Do this for about 6 months with no defaults in your payments. After 6 months call them and ask for a credit increase. Then buy something and pay it off. Do that for another 6 months to a year and ask for another increase. In the first 6 months other creditors will see that you are doing well (especially if you get the 1st credit increase) and they will send you their cards. No matter what you will pay interest with any card!

whether and how much interest you pay does not matter. What does matter is whether you pay your balance on time everytime.

I will go against the grain here and tell you that YES YOU CAN DO IT.

Let me explain it to you. First your are starting to build credit and you need as much help as you can get to keep your payments low and your debt low. So with a 0% introductory apr you will be able to do both and you save money with no interest. Just make sure you are making ALL your payments on time.

Any time you open up a new account your score diminishes a little but take into account that you are trying to build credit so if you dont have a diversified credit history how will you build a good credit history?? So dont worry about opening new accounts

I DONT suggest you open up to many credit cards. To maintain a good credit you only need 4 to 5 credit cards. You dont even need to used them often. All you need to do is use them once a year for small purchases like $5 and pay it off next month. This way your accounts are active and you always make your payments on time.

DO not close credit cards, this will affect your credit score.

Credit agencies look at the "age" of your credit as well. Having an account for a short period of time can actually hurt your credit. They are looking for at least 7 years. So changing cards every 12 months wont help.

It would be better to get a card that you plan to keep and don't use it very often, like once a month, and pay it in full every month., but plan to keep that card forever. Then you can get another card and play the 0% apr game with that one. Having 2-3 cards is ideal from credit score standpoint - less and you dont have enough history, more and you have too much available credit.

The more cards you have though the more you hurt your "average age" of credit

When banks see the revolving debt being passed around but not really paid off, your credit score doesn't grow. What counts for growth is the ability to pay off the debt as well as age of the account.

With the scheme you described the debt won't be paid off soon, and each year you'll have yet another credit account less than 1 year old. It won't deteriorate the credit score, but won't help it much either.

Misconceptions About: Credit Cards, Credit Reports, and Credit Scoring

To improve your credit score you must:

1)Keep many credit cards open
2)Have different types of credit cards (major credit cards, department store cards, and gas cards)
3)Use your credit cards often.
4)Carry a balance forward to the next billing cycle.
5)Pay the minimum balance due

These statements are false. It is better to have a few credit cards with high limits, instead of many low limit credit cards. As a rule of thumb: major credit cards have a bigger and better impact on your credit report, compared to department store or gasoline credit cards. Your credit score is also based on your â€œcushion of creditâ€. Maintaining a zero or low balance owed on all credit cards will report as a positive on your credit report. Also, maintaining steady balances, as opposed to balances that are high one month, and low the next (up and down), tell potential credit grantors and money lenders that you are unstable and dependent upon your credit cards. Remember, your credit score tells lenders what types of debts you have and what your payment/spending habits are.

Closing a credit account will erase the debt from my credit report. Even better, I will no longer have to pay interest on the remaining balance owed if I close the account.

Not only will the credit account still report on the credit report, the â€œcushion of creditâ€ will be lost. More than likely, your credit score will drop due to the fact that you lost an available line of credit. Remember: up to 30% of your credit score is based on cushion of credit (balances owed vs. limits available).

If a State or Federal tax lien is paid and â€œreleasedâ€, the courts and title agencies will be notified. I will be free of further obligation.

When you pay a tax lien, it is your responsibility to take the paid letter/release statement to the local court in which the lien was filed. Not only do you have to notify the court IN PERSON with your statement and identification, you must pay a fee for each lien you â€œsatisfyâ€ with the courts. (Just another way the government makes money.)

If a person dies, their debts disappear or are â€œexpungedâ€

Most credit card agencies, ALL unpaid tax issues, and ALL unpaid student loans will be transferred to the next closest kin. Unpaid debts are passed to families in similar ways wills, estates, and trusts are passed to the family when a person dies. The government has to approve the collection of money from a family member of the deceased, but the government rarely denies a company from pursuing family members for the unpaid debts.

I do that, and have had very good success with it, and no damage to my credit report. I just make sure that I close out the old card (either pay it off or transfer the balance) just before the interest starts accruing.

My credit history has already been built, so I have the luxury of doing this, If you are just starting to build your credit, this isn't a good idea unless you keep one credit card with a high limit and low balance. That way, you will show stability.

then you will have 20 cards at the end, then the credit looks like your fishing for money, thats what they told us!
but good luck

There is some good info here.

you'll have trouble fixing your credit if people see that you own a dozen different cards

no. actually that's the opposite way or ruining your credit. the more cards and credit you have and the less history with that card, your credit is reduced. for instance, if you have a card for 6 months, your credit will be lower because the credit bureaus don't know you that well based on six months, so they lower your score until the time with one card is longer. if you have too many cards open, they will deem you to be too "risky".

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