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What is the best way to build credit?


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im trying to build credit because i know ill need loans in the future just like everybody else.

Im really daft when it comes to this subject. does your credit build every time u use your card and then pay it back on time? Like couldnt I use it to pay for something i usually do every month to build my score up? im confused...help :search:

EDIT: also, might i note that im only 18, my score is probably non existent to be honest LoL

Edited by finkster

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Thats how I started. Got a Sears card which was only good at Sears at the time. Bought tools and paid the card off. Ended up getting another credit card and would do the same. My credit really took off when I bought my first truck with a co-signer of course. Now the last time I check I have a 770 beacon score.

Biggest thing is to pay your bills on time.

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i started off with a jewelry store card. my friends uncle worked there, so i got a discount on top of that :) got some jewerly here n there. then got a best buy card. then a tire discounters for some tires for my old 20's. i dont use those 3 anymore. now i have 2 general credit cards that i pay on, and had a car payment. my score is in the low to mid 700's as well now. it does take a while tho

 

 

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That's what you need to do. Use the card often, not a lot, maybe once or twice a month on something. And then pay it off on time. Even if you have to pay something off in installments, just make sure you pay more than the minimun payment each time and that its on time.

In case your late with a payment. You usually get around 15 to 30 days after a payment is late before it hits your credit history. Once it hits that it will take years for it to come off.

Let's just say I had to learn this credit thing the Hard, hard way.

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i was always told go take like a <$1000 loan from your bank, start small, and pay it off, after that go a little bigger and pay it off and never take too big of one where you cant pay it off.

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Don't become a victim of identity theft. Been there done that. They took out a loan and two credit cards and maxed them out. The loan was dealt with and one card within a month. Be very careful with your personal information expecally online.

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