What is the smartest way to get credit?
Answer:
Probably the best single way to get credit is to get a credit card, and then use it wisely. Consistent good use is important.
Some smart tips to use your credit card wisely:
- If you can't control your spending, keep your cards in a drawer and forget you have them. If you really lack self-control, give the cards to someone to keep for you.
- Pay your utilities with your card. You are not likely to use more gas/electricity just because you know you're charging it. (Most companies take credit cards now.) And it's something you need anyway. As soon as you pay, send a payment for that amount directly to your credit card company. (Hopefully you have money every month to pay your utilities.)
- Online! Keep track of your transactions online. And make use of the online features in your bank accounts as well, so you can send payments easily. Make payments IN FULL every month. If you find that you can't, that means you are spending beyond your means.
People will tell you credit cards are evil. They aren't. It's just a tool. It takes discipline to use your money wisely, and if you don't have it, then you're going to mess up no matter what. (Although credit cards do make it easier, I admit.) Anyway, there's no substitute for self-control. It's all up to you. Good luck!
Read some useful tips on credit and more on this site to help you with it
DON'T!
consider secured cards. then move on to store cards. make sure you pay the bills on time.
tons of credit cards and loans just make sure you dont get carried away and spend more than you can afford also now you cant claim bankruptcy so dont even try that .
If you're just starting out and want to establish credit, check out http://finance-girl.blogspot.com/2006/09. for tips. Also try applying for a store credit card once you have a regular credit card.
Once you get credit, you have to maintain it and get your fico score up. This takes time but building a record of responsibly managing your accounts will pay off. For tips on raising your credit score see http://finance-girl.blogspot.com/2006/09.
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