I’m 18 and don’t have a credit card yet. I’m perfectly fine with that. Cash is awesome. But once I do get a card whats the best way to go about getting good credit without going into debt in the process?
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Whats the best way to build up good credit.?
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4 Responses to “Whats the best way to build up good credit.?”
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Purchase things you ALREADY HAVE THE MONEY FOR in the bank. Then pay them off each month.
Ensure your card has no annual fees, and it will cost you no more to use the card than it does to have cash. Just be sure to never, ever, ever spend more than you have in the bank.
Over time, this will build up your credit.
If you buy a car using a loan, your interest rate will depend on your credit. Once you pay it off, your credit will go up (makes good on debts).
Buy a house, and your credit goes WAY up.
Good luck!
buy small, pay back asap……..
Buy pizzas, lunch, whatever. Then pay if back as soon as you can!
The best way is to get a card with rewards, that you PAY OFF EVERY MONTH! If you do anything else, your credit will be ok but not perfect. I say rewards, so you can charge everything, pay it off when you get paid, and then you get airmiles or some other cool stuff. Having a card with a zero balance, that you pay off each and every month, will make your credit the best. Stay away from cards with high rates and ALL store cards, they are the devil…
For a start try getting either a Jewelry store card or department store cards, they are easy to get because you can only shop there. Buy something about 200-500$ and pay it off over 6 months or so that really helped me build initial credit.