What's the best way to build good credit?
Any advice would be appreciated! Thanks!!
Answers:
Use your card for every day purchases like gas and food being careful never to exceed 30% of your credit limit in any given month. Pay your credit card off in full every month.
After about 10-12 months of doing this you will have established your score to the point that you can get another better credit card. Use it the exact same way. Do not cancel the first card because 35% of your score is made up of your payment history.
After about another 10-12 months you will have a great score, it will be whats called a shallow file because all you will have is a couple of credit cards but it's a start and from there you can start to build your installment credit.
It takes years to establish both a great credit score and a profile, but only a couple of months to trash it.
pay your bills.
Charge items to the card and then pay them off on time when the bill comes due.
:)
You need to use your credit card to build a score. I believe it takes about a year to build credit. YOu need to make your payments on time and make the minimum payments each time. You can view your credit score online for free three times a year. just keep using your card and eventually you will have a score.,
my credit is really good and this is how i did it
i had only 1 credit card for one year, always paid monthly payment and on time,
until recently when i got offered another card that's so much better than the old. im going to cancel that old card and only use this card.
the main point is...
-use just one credit card. if u use too much, u have more chance falling in debt and ur credit score is lower too.
-dont make balance transfer unless u have to
-and pay monthly due on time
-dont spend too much so u dont have that much interest
Use the card then pay more than the minimum each month on time. Get others too. Department store credit cards are supposed to be very good for your credit if maintained properly.
The best way is to use your card for stuff you buy all the time. Just be sure to pay off the debt on time. If you have a good habit of using the card and paying off your debt, they credit company will often raise your credit limit. To have good credit you want to have a good credit to debt ratio. That basically means you want to have a high credit limit but not have a lot of outstanding debt.
Always pay on or before time; Start applying for more cards; Never use more than 50%; Dont be scared to ask for credit increases as well; All else fells, add tradelines to your report.
pay your bills
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