I was thinking of getting a credit card and buying something that cost more than I can afford and pay it off little by little.
Most Helpful Guy
I wouldn't suggest going in to debt in order to build your credit, but that's just me.
What about opening up a credit card at a store like Target or Best Buy if they offer 0% interest for the first year or something like that, and buying stuff that you have the money for, and just use the money to make those payments?
I'm sure someone with more knowledge of credit will chime in, but try to keep a balance on your card, i. e. don't pay it all off every month.
You could also buy a car and finance it... Would probably be going against what I said initially about not going in to debt just to build credit, and you would probably need a co-signer, but that could be a good way to start establishing credit.3
Most Helpful Girl
I will give you some solid advice. Using a credit card to buy something you cannot afford, but will only make minor payments each month is not going to help build credit. The best way to build positive credit is to purchase small things that you can already afford.
Use your credit card like a debit card. But be vigilant and immediately put the amount of money you spent, back on your credit card. Do not leave a balance each month, because you will be charged interest on that purchase.
Sure that cute top seems worth it now. But that 20 dollar top is now a 24 dollar top (with 20% interest on top of it, not to mention taxes!). This can quickly add up and create a problem if you are not vigilant.
A lot of people think credit cards are great, but it's easy to run into problems with them. The best way to build credit is put a bill you can easily pay off each month on the credit card. So for instance a phone bill. Then pay it off in full each month.
After being a good customer and paying your bill, you will get credit limit increases. And you will help build a credit history and it will definitely open more opportunities for you down the road.1