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Building good credit...

My DS and I want to start building up our credit, whats the best way? Are there any suggested starter credit cards we should apply for? We rent our home but our small town don't apply that towards out credit.

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mama28th

Asked by mama28th at 9:20 AM on Aug. 10, 2009 in Money & Work

Level 2 (10 Credits)
Answers (4)
  • Don't do credit cards. Your utilities and car payments (if you have them) are good credit boosters. Don't know how everybody else feels about this but instead of credit cards we go to the credit union and take out small loans (like $500). We then hold onto the money in a savings account, it's there if you we have an emergency and if not we use the money we borrowed to pay back the loan.
    kc932

    Answer by kc932 at 10:14 AM on Aug. 10, 2009

  • Forgot to add this, the credit union or even a bank will have a better interest rate than a credit card plus you will not get the penalties with a loan that you will with credit cards if you are late. The loan helps build a good record with the bank.
    We are with a very larger credit union and we always have full access to the Manager. She knows us I know that if something happened we could walk in and get a loan if we needed it. We currently have a car loan and a signature loan with them and have great interest rates.
    kc932

    Answer by kc932 at 10:18 AM on Aug. 10, 2009

  • If you decide to get a credit card, treat it like a check. Only charge the amount you know you can pay off at the end of the billing cycle. Keep track of everything you charge, and make sure you pay well before the due date. Credit card companies use any slight chance to increase the interest rate and to charge a late fee. Late fees can be $40 or more, and paying late can ruin your credit score. Credit cards make it easy to get into financial trouble, but are convenient if you stay on top of them.
    RedRowan

    Answer by RedRowan at 12:47 PM on Aug. 10, 2009

  • small personal loans are good at building credit as long as you pay on time.
    mommylovesu28

    Answer by mommylovesu28 at 3:43 PM on Aug. 10, 2009

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