How to start building credit???

I am a college student and I want to build my credit so that I can apply for a car loan without my parents. I know that if I get a credit card and use that and make the monthly payments, this would build my credit but how can i be sure that this will build my credit?

Hello, If you have a checking account try your bank. you must have at least three months of good credit to qualify for a car. They also have first time buyers program, where you may get away without a co-signer. Alot of credit companies are anxious to supply college students with credit. You will find applications in the dorms, the library, at stores around town. And before you know it you may have 10 credit cards and become in debt. But don't get to excited start out slow. Your young. One card is sufficient. Negotiate your percentage rate, and Pay your bill off every month once you establish the credit. Don't get carried away. You will need your credit post graduation for employment, home and Auto. So please be careful. And if you cannot afford a certain brand of vehicle don't get it, keep your payments at a reasonable level, under 250. Good luck. Pay your bills, and pass your classes.
You'll be fine.

The ONLY thing that builds a solid credit record is the use of credit and successfully paying it back on time. Any bank will approve a loan from a person who has a good track record of paying bills and using credit responsibly.

Every month a credit card company must report a payment or lack there of to the three credit bureas.

Get "guerilla credit repair".

Get all three of your credit reports. Contact transunion, experian and equifax. Make sure all the information is correct and that all the accounts on there are in fact yours. If there are any errors at all, get them corrected. This may take a while.

Satisfy any judgements or debts you have.

Go to bankrate.com. They have good articles for starting off your credit. If you have no credit at all or some problems - you might have to get a "secured" card. A normal credit card gives you a line of credit. A secured card is where you put up your own money, pay an annual fee and can't take out any more than you put up. The rates are high, so if you don't pay it off every month you will incur interest charges on the very money you put up! However, if you pay your bills on time for a year you will get a history.

You need to build a history. You need at least 4 lines of credit open that you have paid bills on time for at least 6 to 12 months. You might also try some store and gas cards. The rates suck and you can only use them with one retailer, but they help you build a history.

Once you build a history you can get cards with good rates and cancel the old ones.

Never borrow more than one third of your limit.

Always be on time with your bills.

Never just cut up a card. Call and be sure it is cancelled.

** Years ago I was in your situation. But I put up $300 for a secured card. I paid my bills for a year on time. After 6 months I could get a department store card. Now I can get real cards.

As long as you make your monthly payments on time your score will build up. Also see if your parents would add you on as as authorize user for like an american express, household credit card, or any one of those top notch credit cards. Dont use the card just get the same credit and point your parents get and over time your credit will build up.Also take 300.00 to the bank an open up a savings account and ask the bank to let you do a signature loan. Remember you must leave the money in the bank as collateral. Have them set it up for as least 6 months. Over a period of time your score will build. One more thing When you do get yopur credit cards manke sure you keep your balance low. Example if your limit is 300.00 always have 225.00 available credit. Always keep revolving accounts low as possible.

Good Luck

Get 2 low limit credit cards .A Visa or MC and a Department store card. Youll need to be paying them for about 10 - 12 months w/o fail .Thats a great start. Good Luck

The answer to your final question is: yes, it will build your credit. That's how everyone builds credit. Making your monthly payments on time is more important than your income, though if you want to buy a car that will matter too. It does take a long time, but if you pay your bills on time always you will build credit. I started with a JC Penney card when I was about 22. Then I got a Sears card. This enabled me to get a Visa, and now, years later, I've got tons of credit. Have faith and pay those bills!

Make sure you always pay ON TIME, and try to pay it off as you use it. So say you charge $50....pay it off before you use it again. And always pay more than the minimum payment. That looks good to creditors.

To build your credit with a credit card you just have to pay your bill consistently every month or the required payment consistently every month and on time according to the account dates. Don't ever go over your limit.'

Basically to get a good credit rating, you have to borrow money and pay it back in a timely fashion. Having a credit card is one way to borrow money. In addition, being employed helps - if you are gainfully employed, this means that you have "prospects". Things that raise your credit score obviously include a record of timely (never late) payments, the longevity of your credit with a lender, not having too many open credit cards with big limits that you don't use.

Make a small 30, 60, 90 day loan at a bank or other leanding institution. Perhaps you will need a co-signer. Don't spen the money, keep the money.
After 30 day's pay the loan in full. Repeat a couple of time. Bingo.

the best way is to get someone to cosign a loan, such as a car, make sure the loan is in both names, and you pay, with a check when the bill is due. You both will get credit, but you will get most because checks for the bill are in your name

Credits card are problem,if you want to build a credit just open an saving account in a bank,so everytime you have some spare change just put in in your saving account.They have some kind of account that you can frooze your money for one years and more,with interest,and if you visit a bank they will give you more advice about how you can save money.good luck:)

you have to start by paying bills on time. Lots of companies will do this over the internet so you don't have to wait on the mail. Or some will even take a phone payment at no charge. Not many will but some will.

Be sure. It will. Get a card (you will most likely get 500 limit if you are a college student) Keep your spending on the card under 30% ($150 a month) and pay it off immediately. This will build a history and will help you get a car loan with a better interest rate.

BUT my advice to you is this:

do not lease a new car. save your money at emmigrant direct.com (it has the highest interest rate 5.15%) and buy a used car. It's much cheaper and it will be all yours!

best of luck

First, look at your credit report. If some collections look cryptic (such as wierd name of a collection agency), look the agency up on the internet and call them to clear debt. Then get credit cards and pay them off RELIGIOUSLY. I went from 650 to 786 in 6 months this way

To build your credit, don't just make the minimum monthly payments. Pay the balance in full or pay extra every month.

Do not get more than two credit cards. Bankers see that as a potential to run up too much debt too quickly.

Is your name on your college loans? If so, that counts toward your credit rating.

How can you be sure? Call the bank where you are planning on getting this car loan, and ask them what they want to see on your credit report. Having the right details can make a huge difference in the interest rate that they charge you.

If you are planning on buying this car after graduation, you have no worries. Many car companies offer special deals to recent graduates. Just ask about it when you're negotiating.

9 ways to build a killer credit score
It's much easier to start from scratch than to repair black marks later on. Here's how to push the right buttons at the credit bureaus.

View all top-rated articles

By Liz Pulliam Weston
Establishing a good credit history has never been as important as it is today.

It's not just that you'll need good credit to get decent rates when you're ready to buy a home or a car. Your credit history can determine whether you get a good job, a decent apartment or reasonable rates on insurance. One seemingly minor misstep -- a late payment, maxing out your credit cards, applying for too much credit at once -- can haunt you for years.

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.

Check your credit report
You'll first want to see what, if anything, lenders are saying about you. That kind of information is contained in your credit report at each of the three major bureaus: Equifax, Experian and Trans Union.

Credit reports are used to create your credit score, the three-digit number lenders typically use to gauge your creditworthiness. Lenders also may look at the report itself, as may the landlords, employers and insurance companies who use credit to evaluate applicants.

Can you have a credit report if you've never had credit? Maybe.

Somebody 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.

If that's happened to you, you'll need to clean up your credit report before trying to apply for new accounts. The Federal Trade Commission has information that can help.

Establish checking and savings accounts
Here's a basic step that's sometimes overlooked by people seeking credit. Lenders see these accounts as signs of stability.

Opening checking and savings account is also one of the few things you can do as a minor to start building a financial history. While you can't get a credit card in your own name until you're 18 and can be legally held to a contract, many banks have no problem letting you open an account.

Many, but not all. If your bank balks, you need to either look around for another bank or consider opening a joint account with an adult.

Understand the basics of credit scoring
You need to know that the two most important factors in your score are:

Whether you pay your bills on time.

How much of your available credit you actually use.

It's essential that you pay all your bills on time, all the time. Set up automatic payments or reminder systems so that you're never, ever late. All it takes is a single missed payment to trash your credit score -- and it can take seven years for the effects to completely disappear.

You also don't want to max out any of your credit cards, or even get close. Keeping your credit use to less than 30% of your credit limits will help you get the best possible credit score -- and should help keep you from getting over your head in debt, as well.

Finally, you don't need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time.

Piggyback on someone else's good credit
The fastest way to establish a credit history can be to "borrow" another's record, either by being added to a credit card as an "authorized" or joint user or by getting someone to co-sign a loan for you.

Having a co-signer can allow you to qualify for loans you might not otherwise get. The loan will show up on your credit report and, if you pay it off responsibly, will help boost your credit score.

If you default, however, you won't be the only one who suffers. The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.

Being added as an "authorized user" has its risks, for you as well as the person giving you access to the card.

If your father makes you an authorized user of his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record. If he has handled the account well, that reflects well on you. But if he hasn't, his mistakes would also become yours. Any late payments or other problems could make it harder for you to get future credit than if you'd established your history without help.

Even if you trust the person adding you to the card, you may not be able to piggyback on his or her credit. Some credit issuers won't report authorized users to the credit bureaus, particularly if the user is not married to the original card holder. If the point is to give you a credit history, the person who's adding you as an authorized user should call the issuer and ask how (or if) your status as a user will be reported.

Apply for credit while you're a college student
Credit experts used to warn college students away from those booths set up on campus by credit card lenders -- the ones that promise free stuff for signing up. It turns out, however, that there's no easier time to get a card than while you're a college student, said Gerri Detweiler, author of "The Ultimate Credit Handbook."

Lenders are willing to take risks with you that they won't once you graduate, probably because they know that your parents' willingness to bail you out will end once you get your sheepskin You still have to exercise some caution, though. Look for a card with a low or nonexistent annual fee and low interest rates. For now, just get one: Opening a slew of credit accounts in a short period of time can make you look like a risky customer.

Apply for a secured credit card
If you can't get a regular credit card, apply for the secured version. These require you to deposit money with a lender; your credit limit is usually equal to the deposit.

You'll want to screen your card issuer carefully. To be frank, there are a lot of bad guys in this particular niche of the credit world. Some charge outrageous application or annual fees and punitively high interest rates.

Your credit union, if you have one, is a good place to start looking for a secured card. You can also check Bankrate.com's list of secured credit card issuers.

Ideally, the card you pick would:

Have no application fee and a low annual fee

Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments

Be reported to all three credit bureaus.

If the issuer doesn't report to the credit bureaus, the card won't help build your credit history.

Get a finance company card
Gas companies and department stores that issue charge cards typically use finance companies, rather than major banks, to handle the transactions. These cards don't do as much for your credit score as a bank card (Visa, MasterCard, Discover, etc.), but they're usually easier to get.

Again, don't go overboard. One or two of these cards is enough. If you get many more, you may find that later in your life these accounts could prevent you from getting the highest possible credit score. That's not a reason to avoid them completely, because right now they'll do you some good. Just don't apply for half a dozen.

Get an installment loan
To get the best credit score, you need a mix of different credit types including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).

Once you've had and used plastic responsibly for a year or so, consider applying for a small installment loan from your credit union or bank. Keeping the duration short -- no more than a year or two -- will help you build credit while limiting the amount of interest you pay.

Use revolving accounts lightly but regularly
For a credit score to be generated, you have to have had credit for at least six months, with at least one of your accounts updated in the past six months.

Using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account.

Don't charge more than 30% of the card's limit.

Don't charge more than you can pay off in a month. As mentioned earlier, you don't have to pay interest on a credit card to get a good credit score, and it's a smart financial habit to pay off your credit cards in full each month.

Make sure you pay the bill, and all your other bills, on time

take out a prepaid credit card, or buy a tv or computer from best buy on credit- some low monthly amount that you can pay off- credit card companies want to see you use your credit- not just apply for it

I can honestly say I know what you are going through because I went through the same thing, but I had no credit at all so I couldn't qualify for a credit card. One thing you can do is take out a signature loan for something and make the payments on time every month. Or let's put it this way, if you want to make payments on a car for $300 a month, put that much onto a credit card, then pay it off. When the car dealers see that they will know you can make payments on a car. Or to build credit fast, just put your gas on a credit card because that's real easy to pay off.

IT JUST DOES...SO DOES HAVING A CONSTANTLY GROWING SAVING ACCOUNT HOWEVER SMALL.....

Apply for credit card and make sure all the month end debt is settled. The credit will then developed within the bank after several years later.

Determine how much you will need and dont forget interest you will have earned (consult your bank). Then calculate the present value value and divide that by the months left. your answer will be the monthly saving you need to stash in the bank.

First go to the three credit berueas and get your reports. Make sure that if there are items on it they are yours and if closed were yours. Once you've seen your score you'll know where you stand. Then you want to get either small loans at the bank and pay them off in a 3-4 month time period. or get a credit card at a department store and put small amounts on each month and pay it off. Doing this over a 6 month perion will greatly increase your credit score. Then check back with the credit agencies and you'll be surprised at increase you obtained.
I was 18 when I got my first credit- card and by the time I was 23 I had a credit score of 802 which is almost the highest you can get. Now don't forget to always pay your bills on time and to never over spend and buy unnecessary things until what you bought before is paid for because all yor hard work to get such a good credit rating will go down the tubes. I wish you good luck and hope it all works out for you and you can get your car soon.
You can get your credit information at www.myfico.com it will give you acess to all three credit berueas.

start with a credit card and keep it paid up and opn an account no matter the amount at a bank that shows security as well and buy something at a store on charge thay way you have.3. things in your favor . my opion?

Get a credit card and pay it off each month

First, always make sure to know exactly what's on your credit report. You can get a free copy online. Then, to start building credit, go to a department store & get a card. They are usually pretty easy cards to get. Make sure that you use it, but don't pay it off every month. Just make minimum payments. Just make sure you are never late. That is VERY bad. After a while with your department store cards, apply for a "real" credit card, like amex or visa... Do this by checking thru your bank. If you have a checking account in good standing, usually they will give you a credit card. Then do the same, always make your payments on time & don't be scared to charge. Just make sure you don't charge more than you'll ever be able to pay off. Just start small, give it a little time & before you know it, you'll get that car loan. You know you can probably get it now, you'll just get a really bad percentage rate.

Simple: Get a card, charge something and PAY IT OFF IMMEDIATELY. Do that for a few years...buy a car...make your payments and PAY IT OFF ASAP. Check your score from time to time and save some $$$ for emergencies. Create a budget and stick to it so you do not overspend. Weekends out drinking with your buddies are expensive. Get a six-pack and watch the game on TV. Got a girlfriend? Tell her you're not cheap, you're saving your money for your future together...

It's easy, just go buy some credit blocks at the toy store:) LOL

Getting a credit card is one way to do it if you think you have the discipline not to go into a lot of debt. If you need something like a dryer or washer you can open an account with Sears or J.C.Penny or even Home Depot or Lowes. Usually their credit accounts are ...pay within one year and there is no interest charged. That would be the best way to go. Anytime you pay monthly on something it shows up on your credit. Start slow. Don't buy but one large item at a time. Pay it off before you get something else. Even tho you have 12 months to pay for it try to double up so you get it done quickly. Then get something else.
This is how we did all our married life. We never had much debt and slowly bought everything we would ever need.
Even got our house paid off severl years ahead of time. Good luck to you. m

Anything and everything you do to show that you can pay your bills on time, and not at the last minute, and more than the minimum payment, will build your credit. Your parents can be of a great help to your credit if you buy a car with their co-signing on the note, and the car is in YOUR NAME ONLY. Then you can secure the loan you want for the car when you don't have much of a credit rating, and then you can build your credit on a very good purchase that Credit Unions look to as a measure. I know I did that with my two kids, now 22 and 20, and it has helped them, even though they haven't made many credit purchases since then. My son has his own ATM card, which I think sometimes is to his negative since he's not real responsible that way yet, but they do have that car purchase, new cars at that, on their record, so that's good for them. Let your parents help you as they can. We do love our kids, and we do love to help them. God Bless you.

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