Any tips on how to build credit?

Unfortunately, the only way to raise your credit score is to get credit. I know, I know, it's like you can only borrow money from a bank if you have enough money already. I was once told that I should buy a car. There are some dealerships who will do anything to help you buy a car, even if you have bad credit. Then, once you start making payments on time, your credit score goes up. Other than that, you may be able to find a local store chain that issues credit cards, buy one small thing and, even if you only make one payment, as long as it is on time, your credit score will go up. My son did that. He was so frustrated at not having any credit score that he found a small merchandise chain and they offered him a credit card. He bought something for around $200.00 and began making payments. (He had the money in the bank to pay it off in full but wanted to establish credit so he made the payments.) Now, he has good credit. Isn't it awful how you have to have credit to get credit? But, there are some places willing to offer you credit, even these days, although they are hard to find. One thing to remember, though, is that every time you apply for credit, it appears on your credit rating. If you are denied, that also appears. So, it would be wise to ask around and see if anyone knows of a store in your area who will offer credit to just about everyone. The easiest way, although almost the most expensive way, to get good credit is to buy a car. I'm sure it's harder these days but I'm sure there are still some willing to take the risk. (Maybe they have really large and really tough repossession guys. )

Hi Jen, your credit score is there to show how good a risk you are and if there is no credit activity an evaluation can't be made. It is irrational to raise premiums because you don't actually have a bad credit history. The simplest way to build a score in circumstances like yours would be to apply for a credit card with zero or low interest, and use it and pay the balance in full immediately, just for the purpose of building a score.

What worked for me was opening a store charge, JC Penney was pretty easy to get a card with back then. I'd go, make a couple purchases of things I would have bought anyway, paid them off right away. Eventually this allowed me to get a major credit card. Same story. Make a few minor purchases, pay them off. That really sucks that they would raise your premiums when you always pay on time. And I suppose there's no arguing with them? Or finding other insurance?

Good morning Jen, my insurance went up to, join the crowd, This is what the bank suggested to my son when he was trying to get his credit established, Borry a small amount of money from the bank & pay it off as soon as u can & that gives u a good rating anyway. I don't know if that's the best info or not. Maybe someone will have a better suggestion.

get a credit card and buy something with the credit card then pay it off. this is one way you can build your credit. but i never had heard of insurance is base on your credit..hummm they are suppose to do it by your driving record. are you in the states and what insurance company are you using ?

i didn't know your insurance went up for your credit score my went up 20.00 this time first time and i have good credit.you need to buy something on credit is the only way i know to raise your credit score.i knew someone could not buy a car because he had always paid in cash.hope you have a very Merry Chrismas.

You always need credit and even though you might be against borrowing or owing money, sometimes it is necessary. When I first wanted credit, what I did was to buy something on the monthly, 60 day, 90 day and pay it off before the interest was due. When I first got a store card, I would buy something on it and pay it off as soon as I got the statement. What you have to do is to make sure that each purchase is more then the previous and make sure that they are paid off before the interest is put on or as soon as you get the statement. You can also get a Visa or Mastercard but if you have no credit you will get secured credit, but if they see that you have always paid your bills on time, you will get a regular one with no annual fee. The insurance company will then probably lower your fees.

Let's start with the credit game . First, might as well get your credit reports. Start out with the free government website: http://www.annualcreditreport.com. Is there anything on your credit report? Is it blank? Is there anything in collections/negative? If it's totally blank (which I am thinking it is), it's time to apply for credit. Start out with your local credit union. How about your insurance company? Do they have a bank where you can start to get a credit card? If you're able to, get a loan. I know it sounds real stupid, but you could still do it. Here's what you could do: get a car loan and pay it off in 2 or 3 payments. Get a bank loan and pay it off immediately in one payment. However you do want to show you actually have credit history which you could do with a credit card. Don't apply for too much credit. Applying for too much could make the situation worse. Apply for 2 or 3 accounts. What you will do is pay the bill in full before the due date (if you have the account set up where you can bank online, you could even pay it off in full before you get the bill!) Keep doing that for many years and then you will establish your credit. Here are some good websites: www.myfico.com (great website about credit score) www.creditcards.com (great website for applying for credit cards).

I would think getting a credit card and only using it for paying for gas may help, but I can't be quoted on it... I'm sure you know all the bad ways of LOWERING your score, lol.

My gosh! Since i retired, went on benefits and more or less dropped out of the credit freeway I have heard some of the weirdest things that they are checking credit scores and credit in general for now days. For insurance? Interesting. I won't ask who your insurance is through or even for what but have you checked elsewhere? I have no idea how to raise your credit score. Most of the things I have heard are alittle weird anyway. I would check elsewhere. My insurance company sure doesn't check and if it did I would be checking elsewhere.

The only thing I can suggest is getting some credit! Absurd as it sounds, it is the only way to build credit! You could apply for a credit card and use it pay bills like I do and pay the balance every month so you are not charged any interest. It is really great how you have organised yourself to be completely debt free, I think that is to be commended!

That is a big difference between your country's and mine. It seems like very complicated kind of staff, why not you try to call her maybe she could help you. I nearly forget her name...let me see ah... there you go Suze Orman. I think she is the right person to talk to.

How about instead of using cash in the store use only one credit card. Then when the bill comes in or even before the bill comes in pay it off with the cash you would have normally used. Everyone needs to have at least one credit card and use it from time to time to maintain good credit, unfortuntely. If you pay it within the month then you won't get finance charges.

I don't know how you can raise it, I know many people have a credit card to try and better their credit score. I made the mistake of having too many and now I'm in major debt and I can't get out of it and to top it off I'm unemployed. I know a lot of jobs check now to see how your credit is and if you have any which sucks for people like me. I wouldn't be in the situation I'm in if I had had enough money to pay bills and buy food in the past, sometimes you can never win. You would think they would look for people who don't have debt and don't really have credit and think of them as good but they don't work that way. They hate selling people in a lot of debt and with bad credit scores but I suppose they forget about the people who have neither.

If you don't need credit then don't get it. There are several ways to get it but it requires that you borrow to get it, what a catch 22 that is. Don't build your credit, build your cash reserve.

Hi Jen I feel there are some good websites that could help you learn how to make your credit better. I think that for me I tend to know that my credit is bad and the first thing I have done is got all three of my credit reports for free so I can look over what is in my file to know where I stand. I did not order my credit score because there is a cost but you can order that from the credit reporting places as well. I will try to send you some info on a program about cleaning up your credit and so forth and maybe you can see if it is something worth your time. Nice topic to talk about and happy mylotting as well.

Do you have a contract cell phone? With a monthly bill? If so, and you pay it on time..That's a good way to get credit. Otherwise, you pretty much HAVE to open a credit card account up, even if you're not going to use it. Maybe put like $10 on it a month and pay back the balance in full. The only problem with credit cards.. is that they're illustrious. Once you have them, even if you only got one to "build your credit", they become a necessity, and you start using it. I originally got my first credit card about 3 months after I turned 18! And wound up in $1,300 worth of debt (up to my limit) after about 3 months of spending like crazy on nothing in particular. You just have to be careful. A big part of having good credit is actually having a credit card, though, and making monthly payments, keeping your balance low (or zero - even better), and just in general showing the credit bureau that you're responsible with your bills.