How to Build your credit with new Social Security Number ?

Does the the Cellphone Bills, Credit card, Internet bills help in Building credit ?
What is the best way to Build an Excellent credit.
what to avoid .
Additional Details
I do not have 2 social Security numbers.
I just got my social security number so it's new.

Congratulations on getting a social security number and your desire to establish good credit. There's a few things that you can do to build credit, but first, it would help to know what makes up your score

1. Payment history 35%- It's important that whatever bill you may have to PAY ON TIME. Even bills that you may pay every month doesn't always show on your credit until you don't pay and become delinquent and then they'll report you. At one point in time, rent, utilities, car insurance, cell phone bills, were not reported as items to build credit. But that's changed, thanks to PRBC. PRBC allows you to self enroll and report the payments I mentioned along with others as a way to establish credit. By enrolling and having your monthly payments verified for a fee and reported after a year, you could qualify, for a mortgage! True story! (click here) http://prbc.com/consumers/how/mortgage.php There's so much on the website that I know that I might have forgotten to mention, so all I can say is check out the website, it definitely can help you!

2. Amount owed vs. available credit 30%- It's important that when you have credit cards, you don't use all of your available credit. You should use no more than 30% of your combined available credit from all your credit cards.

3. Length of time establishing credit 15%- The older the accounts, of course the better. but since you just got your social security number normally that would be rather hard. I do however have an idea that would help you get some established credit 100% legally. If you have a close friend or family member with excellent credit, ask them to add you as an authorized user on one or two of their oldest credit cards in good standing. They can keep and destroy the card that would be in your name as this would only be for reporting purposes only. Ideally the type of account that would be established for 3 years or more, with a high credit limit, low balance(30% or < the available credit), and a perfect payment history. If you're able to do this, once you're added the activity from that account will reflect on your report giving your score a boost.

Types of credit established 10%- The scoring system's designed to where 3 revolving (credit cards) and 1 installement (car loan, mortgage, furniture, applicance loan) would make for a fairly balanced mix of credit. You shouldn't load up just on all credit cards. Mix the different types of credit up if you can. The easiest credit card to get would be a secured credit card. A way to think of this would be as building credit with a savings account, because that's pretty much how it works. You put a deposit upfront that's usuall tied to a savings account to get the same amount of the deposit in a line of credit. The deposit doesn't pay for anything your charge or the minimum payment you may pay each month, unless you become so delinquent and the account's charged off and they use that deposit to offset the cost. But if you're wanting to build excellent credit you're not wanting to let that happen. 2 advantages of secured cards are that you can control the credit line by adding to the deposit to increase it instead of having to request for approval for an increase and the deposit is gathering interest while you're building credit. As long as you make your payments on time keep the balance < 30%, usually after a year the deposit is no longer needed and refunded back, and either the card converts to a regular unsecured card, or a better card is offered. I posted a link to Orchard Bank, which is a good place to start out building credit. You may get approved for a regular one with a small limit, and if all else fails, they offer secured cards to start out with.

Inquiries and New accounts vs. Established accounts 10% Each time that you apply for credit, your score drops up to 5 points, and if you're approved for the account, it can take up to a year for your score to reflect that increase. Also you want to apply sparingly, as multiple inquires in a short period can be seen as a red-flag to lender which give them the impression that you're desperate for credit. By becoming an authorized user, that satisfies having an established account which will attract potential creditors to give you and extend credit.

I know that I threw a lot of information out there. I hope it works out for you

It's illegal to have more than 1 social security number.

Cellphone companies and internet companies to do not usually report to the credit bureaus unless your account becomes delinquent.

Most credit card companies report monthly and would allow you to establish positive credit.

The best way to build excellent credit is to get a reasonable amount of loans in your name and make payments on them every month.

Keep your balances below 30% of your available credit.

Avoid opening too many accounts and using your credit cards too much.

sears credit card, buy a car, 2 really good ways to get credit.

Best way is actually getting credit cards with a high limit. Creditors see how well you can manage your money not your bills. Although, if you're late on bills that will negatively affect you. But getting a credit card and paying 3 times more your minimum payment will help your score A LOT. Also, make sure your balance isn't more than 50%, for example if you have a 1000 dollar credit limit, but used 500 dollars, then that looks bad so keep the balance less than 50%.

Loans also help a lot, but credit cards are a great way to build credit. Then, from a credit card get a car loan or something major and that will help you get larger loans for school or a house.

But internet bills and cellphone bills does not help build score, but if you stop paying then those bills will go into collection and that will hurt your credit.

Is your objective to have credit, as in owing someone? What is wrong with saving and paying cash? In my book the only exceptions are (1) house, 15-yr fixed rate, and (2) vehicle, 2-year term, max. Don't believe the car salesman that it is unAmerican to own a paid for car! America is freedom and not having debts is one of the best freedoms available. good luck in your life's journey.

There is no legal way to get a new social security number for an individual.

There were people suggesting that you start a company and get a tax id number and use that for credit but that does not work because most vendors will ask for the owners SSN also.

The best thing to do is build good credit now by paying everything on time and seeing what you can do to repair anything if possible.

Time is the best thing. If you started to pay everything on time now, after 7 years all the old listings will be removed.

Don't start the clock over by negotiating newly with any of the old companies.

Welcome new citizen. Here is the best advice that you will receive about money and credit. Do not borrow money. Do not use credit cards. I don't fuss about a mortgage but paying cash for a house would be best.
Read your question. You ask what bills do you need to build credit. I hate bills. But people are falling over themselves to get bills so that they can borrow money to have even more bills. Save your money and pay cash for what you buy. There are plenty of people out there who will give you advice on how to beat or play the loan system. You live in a free nation don't become a bond servant of visa, MasterCard or the bank just because you wanted to borrow money to have a good credit score. If you don't borrow money than your credit score doesn't matter. You can live your live without the thought that if you can't work someone will come to your house to get your car or take you to court to pay the bill on the laptop. Live free own your stuff and own yourself don't let your stuff own you.

Get a credit card (or a couple) and keep your balance at half or under your credit limit. Pay more than your minimum balance + finance charges combined each month. Use the card at least once every 3-6 months to keep it active. If you're going to get a phone bill or something like that, make sure they report your credit to the main bureaus each month (transunion, experian and equifax). That should build your credit up in at least six months. Also! you can check your credit report every 3-6 months, or whenever you'd like (find a place that will do it for you, may cost money). But most places update their systems every month. Also, don't get too many inquiries, that could and will drop your points down. Good Luck!

Rebuilding your credit score is alot easier than most people think. For no to poor credit, a poor credit credit card is perfect to do so. This also allows a better chance to being approved for a credit credit card, and building credit only takes 6 months, sometimes 3 months to allow you to move on to the next credit card.

I would suggest the Continental finance gold mastercard which has a low apr, low annual fee and credit building service.

I'm living in the US for about 10 years, I got my SSN few months ago but before I was using my TAX ID for pretty much everything, my credit scrore with my Tax ID is 764, how I can migrate or transfer all this credit I built all these years to my new and creditless SSN? Currently I own a house (got a mortgage) 1 car payment I have at least 30K in line of credit I dont know the right way to do it, any thoughts? Thanks in advance.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Sunday, May 27, 2012 - Terms of use - Privacy Policy