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Should I get a credit card to build credit?

In about 1yr we want to buy our first home.
My DH has pretty good credit (lower 700s credit score)
I on the other hand have --NO-- credit.

Should we get a credit card in both of our names & pay it off monthly so i can build credit before going to buy a home?

 
Anonymous

Asked by Anonymous at 4:23 PM on Apr. 18, 2011 in Money & Work

This question is closed.
Answers (19)
  • Secured cc are the best way to go. When I first started my credit thats what I did. I had to put $300 in it. And if you charge anything be sure you are able to pay it off within a month otherwise you will be paying interest. If you do decide to get a secured card it would be best to get one from a credit union bank.
    vjoaquin

    Answer by vjoaquin at 1:52 AM on Apr. 19, 2011

  • Most lenders like to see at least a 6 month payment history on any credit cards or consumer loans. That is what builds your credit. Be careful though, credit cards can raise your credit score quickly...but they take the worst toll on it also if you get behind.
    KennsWifey

    Answer by KennsWifey at 4:49 PM on Apr. 18, 2011

  • Get a secured card.
    mommy_of_two388

    Answer by mommy_of_two388 at 4:23 PM on Apr. 18, 2011

  • actually, showing consistency in paying your bill will go toward credit-worthiness, rather than paying the balance each month. i know interest sucks, but leaving a little there, and paying ON TIME monthly is what they want to see. it shows you have the means to maintain their credit and your ability to pay for it..like a give/take relationship.
    dullscissors

    Answer by dullscissors at 4:33 PM on Apr. 18, 2011

  • secured card is where you put lets say $500 to the bank/credit union. They keep that $500 and then you have a $500 limit. Once you cancel the card you get that $500 back. I have one and it raised my credit over 50 points in less then a year
    mommy_of_two388

    Answer by mommy_of_two388 at 4:47 PM on Apr. 18, 2011

  • elizabr

    Answer by elizabr at 4:51 PM on Apr. 18, 2011

  • And I have been told by a few lenders and read online that IT DOES NOT help your score to leave a balance(however small) on your cards. Paying it off immediately is the best way to go.
    CollinsMommy729

    Answer by CollinsMommy729 at 4:58 PM on Apr. 18, 2011

  • No, that would be the worst financial advice a person could take, anyone who tells you this is old school.
    Newsflash---there's new rules.

    You would be better off getting a utility put in your name to demonstrate payment regularity, or a small loan for furniture, and pay it off in 6 months time with double payments.

    You could also try a small personal bank loan for the same purpose, and make sure it's for no longer than 6 months.
    romanceparty4u

    Answer by romanceparty4u at 8:05 PM on Apr. 18, 2011

  • The only reason you'd want to build your credit is so that you can eventually get more debt. So think about it- if instead of getting a credit card or a secured card, or whatever- you just saved up and paid cash for the things you want, then you wouldn't have to worry about your credit score.

    Ask a question on here- or do a search about the amount of debt people are in. For a lot of them, it started with the credit card and the reason for doing it was to build credit. It's not always a blessing.
    Erica_Smerica

    Answer by Erica_Smerica at 12:49 PM on Apr. 19, 2011

  • I would just put some of the bills in your name. The issue with Credit Cards is that while at first you might pay it off monthly eventually something will happen where you might only be able to do the minimum or not pay on it at all.
    My understanding is that a "secured" credit card is basically a "pre-paid" card. Say you get one with a 500 dollar limit on it. What happens is you give 500 to your bank and they hold it as collateral basically. So that if you don't pay off your balance they don't get screwed. However it also makes sure that there's not a huge black mark on your credit.
    2murphyboys

    Answer by 2murphyboys at 4:46 PM on Apr. 19, 2011

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