I'm new in the US and need to start building my credit...?
Answers:
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.
Good Luck!
pay all your bills on time
It usually takes a good year to build credit. However, there are mortgage companies that may be willing to give you a mortgage as long as you have a proven employment record.
Only use up to 30% of your available credit and pay all of it monthly.
Hi Caterine where do you live?
This makes a difference of the credit establishment.
I have a friend with a place in the country where people make less than in the city but their score is much higher as their income is considered high for the area that happens to be very nice.
Mention the answer and please vote for me if it helped.
thenemo12003@yahoo.com
I do home loans and most lenders look to see that you have more then two trade lins. One great way to build credit and also easy to get is to open a gas card. Go to you local gas station and apply for a card. Another way is go to wich ever bank you bank with and have them open a credit card too. when you have your credit cards and say for example the credit line is 1,000. dont spend more then $450.00 it wouldnt look great on your credit if you did. good luck with everything.!!
Since credit reports do not transfer from country to country, financial institutions may be willing to recognize your earlier credit history outside of the U.S. if you ask them to do so. This may involve, for example, requesting a copy of your credit report from the credit-reporting agency in your old country and sitting down with a branch officer to discuss your credit or loan application.
This may help you obtain a credit card or loan using your credit history in your old country.
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