How do I build my credit?

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.


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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.

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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.

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What Guys Said 18

  • Why does this involve buying something you can't afford? Unless you want credit to buy that thing? You can build up credit by using a credit card for basic shopping and then pay it off in full each month to avoid interest charges. You don't need to acquire debt and pay lots of interest to build up credit.

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  • The best way I found to build credit, is to save about 500 dollars get a secure credit card, buy things with your own money while building credit and with in six months you'll have excellent credit. I've done this several times with people and it always works. Getting a regular credit card will only leave you in debt and it's not financially sound as a decision. So use your own money to build credit and you can't lose, it's a win win for you and the credit card companies.

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    • whats a secure credit card?

    • That is a credit card where as you use your money to secure a line of credit. Basically you are using your money not the banks, and in exchange they charge very little interest and you get better credit as you pay back your own money that you borrowed. It usually takes six months to build good credit this way if you don't have any credit, if you do have bad credit it can take up to 7 years to remove bad credit from your reports. You can look for secure credit cards online to get started, they range in deposit from $200 to $1000 that I've seen, but I think doing $500 is best.

  • For big purchases, I've lately been getting new cash back rewards cards which have 12-18 month zero percentage rates and make those purchases on them. By paying off the card during the promo period, I avoid paying interest. Plus I get cash back on the purchase.

    If I have to borrow money for longer periods, like getting the A/C fixed at home last year, I'd get another bank loan at a MUCH cheaper interest rate. If you don't NEED it, don't pay interest on it. But if you are building a new credit history, you'll just need to focus on applying for fairly 'easy to get' cards. And there are ways to do that without paying a cent of interest. I've got a good bit of credit experience (820+ FICO), so If you want more info on specific cards you could get, based on what your current life situation is, feel free to PM me so I don't sound like a commercial here in the open. ;-)

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    • yeah I have no credit experience... what type of card should I buy?

    • Depending on your debt and income situation, I'd suggest starting out with a CareCredit card and/or a Capitol One credit card. They'll likely start you off with a low credit limit. But use them occasionally and pay the bill off in full when it comes in to avoid any interest charges, and in time, the credit limits will be raised and Capitol One will offer to switch you over to one of their rewards cards. By then, you should be able to obtain almost any card you want. Have you used one of the truly free credit sites like Credit Karma?

  • I wouldn't recommend that. A lot of people have serious problems with controlling their spending especially with credit cards. Going into debt is never a good idea. Save up if you want something and then buy it that's a much better way. I've only overcharged my account 200 bucks sometimes but that's all otherwise I only spend money I have.

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  • Credit is usually build by history - If this is your first card, they will probably give you a card with a low limit, keep paying that and you build a good history then they will increase limit obviously other factors like employment, salaries and guarantors might factor in for a young person.

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    • Most credit cards have interest free if you pay in first month so paying little by little means you get hit by high interest - You are probably better off looking at purchasing things on store cards or instalment plans, the extra cost is probably less than interest you would pay on credit card.

  • NO NO NO NO NO
    First, if you're going to get a credit card, get a Discover card. They've always treated me well.

    Second, the point of using credit, at least short term, is to only buy things you CAN afford. Treat it like cash, and do NOT go over 15% of your credit limit (if $500, then only spend $75 max per month).
    Pay off the statement immediately, do not let it build interest.

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    • Yeah, my parents always tell me the exact same :), good advice

  • Credit cards can be traps. I recommend you to buy only things you can afford or you may see yourself in debt easily.

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  • Get lines of credit, like a credit card, user it responsibly and always pay off the statement balance every single month and on time

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  • No no no no no. Buy something that you can afford with a credit card and pay the credit card off

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  • i personally wouldn't do that. I'm no expert at all I've had a credit card for about a year now and I'm learning as i go. i have a weekly budget, and use the card for only those purchases. then pay them off every few days. have paid absolutely 0 interest on my 2 cards, but my score is 740. its not a crazy great score but its not a bad score either.

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  • That's how you destroy your credit

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  • Pay your card each month

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  • Or get a credit card and show that you have good credit.

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  • Monetary system is designed to rob you, don't fall for that love

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  • don't. just use a debit card.

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  • cell phone in your name is the quickest way

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  • the faster you pay it off, the better your credit

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  • Don't overspend on stuff you don't need

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What Girls Said 8

  • i dont advise it. better to spend from your savings, but if you have to, it's better to only use it for items from say $500. before you spend that money, you need to give yourself a deadline as to when you're gonna pay it off. if you aren't careful, the whole credit card addiction can get really bad and lead u into debt, so be careful.

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  • Get a credit card wit a small limit-like 500$.

    Go buy a bun of stuff for like 100$. Pay it off immediately with your own money. This builds good credi. In other words use the credit card when you don't need it so you can use it with decent credit rating when you do need it. :-)

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  • Putting your phone bill in your name, little things that are in YOUR name.

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  • I should've paid attention in my Principles of Financial Literature class but I was playing pacman instead so.. sorry I can't help you xD

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  • Nooooo don't do that please.

    A much better way is to have a family member co-sign a loan for about a thousand dollars, buy yourself a tv, or a new set of tires and then pay the loan back. You'll get much MUCH more credit for that than a credit card and it's much less dangerous than maxing out a credit card.

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  • You would be better off to just buy what you can afford & pay it off quickly. When the statement comes preferably.

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  • Get one and use it wisely. Don't take forever to pay it off as you'll be paying too much interest. Paying interest sucks!

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  • I think your idea is a good one

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