How to establish a credit history

[samiole32]

Anybody knows how to establish a credit history ?? if you don't have a credit history is it better or worth than having bad credit? so anybody know an effective way to establish a credit history record other than work ??

Thank you in advance

[hawkeye3210]

If you have a credit card, and pay it off every month, it would be a start to developing a credit history.  But you have to make sure to pay the entire balance due every month.

[samiole32]

If you have a credit card, and pay it off every month, it would be a start to developing a credit history.  But you have to make sure to pay the entire balance due every month.

I have a credit card toward my saving account and I pay it off every month does this help?

[superteacher]

Try to Get a store credit card to start

Store credit cards generally have low credit limits and more lenient approval requirements. It seems like every store these days has a credit card. These cards often come with an account-opening bonus such as 10% off your first purchase, so the next time you need to buy something from your favorite store, go ahead and take advantage of their credit card offer. Just make sure you have enough money to pay the bill in full when it arrives. Don't forget that you're trying to establish good credit! If you don't get approved for one store's card, that doesn't mean you won't get approved for another, so just try elsewhere.

[superteacher]

Secondly, Finance a store purchase with a same-as-cash offer.

Especially around the holidays, stores often let you purchase items on credit with a deal that allows you to pay no interest for a set period of time, usually 90 days. Since this is a type of loan, it can help you establish good credit if you pay it off on time. To avoid paying interest or hidden fees, make sure to pay this loan off before the allotted period expires and make sure to read the fine print before signing up. Offers like this can be found both in-store and online.

[superteacher]

Finally Building a Good Credit History Should Be Free

One somewhat poor piece of advice often given to those with no credit history is to take out a small loan from the bank and pay it back on time. This is a bad idea because it is a waste of money. You'll have to pay interest on that loan, and no matter how good the interest rate is, why pay to borrow money that you don't even need? It isn't necessary to pay interest to establish good credit, and the only debt you should incur to establish credit is the very temporary kind that occurs between the time you charge a purchase to a credit card and a couple of weeks later when you pay the bill in full.

[dreamyxo]

Do you have any utilities in your name?  I'm assuming you are fairly young and may not be living on your own yet.  If you are living with parents or roommates ask them to put the electric/ water/ landline bill etc in your name.  What about car insurance?  Make sure these bills get paid every month.  This also helps to build credit.

[sdenimandlace1]

It all sounds like good advise to start a credit history. Start little and go from their, have you bought a car yet that goes toward it also.

[samiole32]

Try to Get a store credit card to start

Store credit cards generally have low credit limits and more lenient approval requirements. It seems like every store these days has a credit card. These cards often come with an account-opening bonus such as 10% off your first purchase, so the next time you need to buy something from your favorite store, go ahead and take advantage of their credit card offer. Just make sure you have enough money to pay the bill in full when it arrives. Don't forget that you're trying to establish good credit! If you don't get approved for one store's card, that doesn't mean you won't get approved for another, so just try elsewhere.


Thank you very much for the great advice I did what you told me I went to sears last week and I got approved for their credit card and I will try to use it and pay off when the bill arrives.
Do you think the more cards you have the more credit you build I mean the faster you build a credit??

I really appreciate your help Thanks a lot

[samiole32]

Do you have any utilities in your name?  I'm assuming you are fairly young and may not be living on your own yet.  If you are living with parents or roommates ask them to put the electric/ water/ landline bill etc in your name.  What about car insurance?  Make sure these bills get paid every month.  This also helps to build credit.

I have the utilities in my name and I pay on time even before the due date but I didn't know that goes toward my credit

Thank you for the advice

[dreamyxo]

Do you have any utilities in your name?  I'm assuming you are fairly young and may not be living on your own yet.  If you are living with parents or roommates ask them to put the electric/ water/ landline bill etc in your name.  What about car insurance?  Make sure these bills get paid every month.  This also helps to build credit.

I have the utilities in my name and I pay on time even before the due date but I didn't know that goes toward my credit

Thank you for the advice

Although utilities don't get reported on your credit report some places do report if you have late payments.  It depends on the utility company.  That's why it's important to pay on time because if you don't it will show as negative on your credit report.  If you haven't done it already I would go ahead and order your credit report to see what it has on there.  You get one free each year from all three agencies.  Go to www.annualcreditreport.com to get yours free.

[bigedshult]

one of the ease way is to go to sear and get accountant their .easy to get one their by some thing for a little then pay it on time for some mouth then go and update your account by byine more thing and paying not on time then go to other stores likt betby and do the same.

[jsuderc]

When I first started to build credit, I got a Capital One credit card. They start you off with a $500 limit and as I pay my bills on time, my credit limit goes up. They also have 1% cashback and a bonus on the cashback if you pay on time.

[queenofnines]

Co sign with someone who has good credit and is established, like a spouse or family member.  Keep a running balance for several months.  Then pay for everything with credit cards, and pay the cards off each month.  My credit score increased by over 150 points by doing this.     It's quite bad to not have a credit history, yes.

[jenbou]

I think having no credit is just about as bad as having bad credit.  I'm have bad credit & am trying to improve my score (got my score for free at creditkarma.com (transunion) and quizzle.com (equifax or experian - can't remember which)  I found out there is a girl that lives 30 miles from me with the same nam (I have an unusual French last name) and her stuff was on my credit report.  There were numerous books at the local library about how to improve my credit report, dispute errors, raise my score etc.  Those combined with the websites I mentioned are pretty helpful.  Good luck!