How to build credit? (RossMAN?)

[crt1530]

I am a 20 year old college student. I have a checking account, two trading accounts--one Roth IRA and one taxable. I have no debt, and will NOT go into debt for anything short of a house (cars included). My question is this: How do I build credit without acquiring debt/paying interest? I have thought about buying a TV on one of those "no interest for X months" deals and paying it off lump-sum at the end of the interest free period. I have no bills whatsoever aside from tuition (no loans). I tried to get an Equifax "Score Power" repot, but since I don't exist credit-wise, all I could get was my report without a score (attached with personal info removed). The report told me what I essentially already knew. No BAD credit, but no good credit either. All I want is to be able to get a good credit card (AmEx Blue) and up my nonexistant credit rating. Any ideas?

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Previous Address(es):

No Addresses Information on File.

Employment History:

No employment history on file.

Public Records

No Public Record Information on file.

No bankruptcies on file

No liens on file

No judgements on file

No garnishments on file

No secured loans on file

No marital statuses on file

No financial counseling on file

No foreclosures on file

No non-responsibility entries on file

Collection Accounts

No collections on file.

Additional Information

Companies that Requested your Credit File

09/13/2002 ID-Equifax Consumer Services, Inc

09/13/2002 Equifax Consumer Services

09/13/2002 Equifax Consumer Services-SP

09/13/2002 Equifax Consumer Services

08/29/2002 American Express TRS Co,inc
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By the way...I have worked three different jobs where they took out taxes, so I don't know why they would have no work history. I applied for an American Express Blue for Students card two weeks ago. I was going to apply for a few more, but heard that multiple credit request on your file would get you declined. It pisses me off that Equifax is showing up four times because I had trouble getting my report online.

*Edit for formatting.*

 

[Angrymarshmello]

There's nothing wrong with a lot of companies showing up on who requested your credit file. In order for someone to build credit the best and simplest way is to sign up for a credit card. Discover is a pretty safe newbie card - I got one easily with no credit whatsoever, just half a year into my first real job. Just buy stuff and pay it off at the end of the month - don't let it sit and have interest tacked onto it - iirc that's not any better than paying it off all at once. You can't just expect your credit rating to build overnight - it's a long, gradual continuous process - the earlier the start the better.

 

[Viper GTS]

Get a credit card, buy as much with it as you can (stuff you'd have to buy anyway) and pay it off every month.

Start building credit, if you don't carry a balance it won't cost you anything to do.

My first card was a CitiBank Sony card, I had no previous credit (just like you) and they gave me a $1,200 limit.

Viper GTS

 

[GoodRevrnd]

Pay bills on time.
Get a credit card and spend 75% of limit on it a month, pay it on time and in full.
Buy a car and make payments on time.

 

[RossMAN]

If you need a new TV, DVD Player or something which costs $299 or more (which usually has the 12 months for 0% APR deals) then go that route but only IF you think you can get approved. As you said buy the TV, make payments and pay it off entirely before the 0% APR period is over so you avoid paying a penny of interest charges.

I dunno why everyone loves the Amex Blue (it sucks now since they took away BVG). If you want a "good" credit card I'd go for a CitiBank cc.

If you think your chances of being approved are slim to none (which is usually the case with credit newbies) I would either:
1) Get a SECURED credit card (bad news is they usually carry an annual fee), good news is you are virtually guaranteed approval, you do not have to pay interest if you pay off your entire bill within the 25 day grace period and you're building credit. I would go this route if it were me.
2) Get a parent, family member, friend or co-worker to co-sign with you on a cc.
3) If you are a student (HS or college) apply for a student cc, they usually have lower qualifications than a standard cc does.

You are correct that too many inquiries (which I learned the hard way) will damage your credit and lower your FICO credit score. If you feel that some of those inquiries are incorrect then I would dispute them, usually if they cannot prove you authorized your credit to be looked at they'll remove the inquiry(ies).

 

[DogFromDuckhunt]

Get just about any card you can get your hands on ... it seems like every other week I'm getting a "you've been pre-approved for such-and-such" card in the mail. I just waited a while until one with a low standard APR came along (9.9%) and got it. Then purchase everything on it and just pay it off at the end of the month so you don't acquire interest.

If you can't get a card with a low APR, just take what you can get ... but the key is to pay everything, EVERYTHING off at the end of the month. Some cards can have really high interest rates and your debt will pile up fast. Only buy what you can pay off at the end of the month.

 

[crt1530]

Well, I *am* trying to get a new card. I currently have a credit card that withdraws monthly from one of my trading accounts, but I think that's done absolutely nothing for my credit (I've charged thousands of dollars on it, too). This pisses me off a great deal.

This: "08/29/2002 American Express TRS Co,inc" was from an online application for an AmEx Blue for Students card. I haven't received anything from them saying that I've been declined, and I don't want to go and apply for more credit cards that would lower my already nonexistant credit rating.

Basically, all I want is a charge card with a decent limit that I am guaranteed to qualify for. I WILL be paying this off every month. That is why the American Express card appealed to me.

 

[McPhreak]

If you can, get a retail store card (like a Macy's card, Nordstrom's card, Banana Republic card, Structure, etc.). Provided you don't have an outstanding balance, they're really good for building credit. The problem is, is that you usually need existing credit to obtain a store card.

 

[DogFromDuckhunt]

Well, I *am* trying to get a new card. I currently have a credit card that withdraws monthly from one of my trading accounts, but I think that's done absolutely nothing for my credit (I've charged thousands of dollars on it, too). This pisses me off a great deal.

Err... I think you're talking about a debit card. They do absolutely nothing for credit sadly.

If you can, get a retail store card (like a Macy's card, Nordstrom's card, Banana Republic card, Structure, etc.). Provided you don't have an outstanding balance, they're really good for building credit. The problem is, is that you usually need existing credit to obtain a store card.

You can use a debit card (assuming it's of a major card name ie-Visa, MC, Discover ... ) to get an store card. Problem with those is that they usually only work in that store. Target does offer a Target Visa card ... however, if you don't get approved for the Visa card you'll more than likely get the standard card which have HIGH APR's (20%+). But hey, if you just pay it off at the end of the month then it won't matter. Almost everyone gets approved for a Target card, I don't think they'll turn anyone down you just get a really low credit line and a insanely high APR. When I was 19 I just went down, filled out the form (having 0 previous credit history) and got a store card with a $500 credit line. It was nothing then, but move to a couple years down the line and now I've got some good credit and the ability to get good cards with low APR's.

If nothing else, get a family member to co-sign on the card or do get a TV using one of those "no intrest for X months" deals. Just make sure you can have it paid off by the end of the time period or the intrest rates will rear their ugly heads.

Good luck!

 

[ggavinmoss]

Originally posted by: crt1530


Basically, all I want is a charge card with a decent limit that I am guaranteed to qualify for. I WILL be paying this off every month. That is why the American Express card appealed to me.

FYI: AMEX Blue and Blue for Students aren't charge cards -- you can carry a balance.

-geoff

 

[crt1530]

OK. So is it easier to get a charge card and do they allow you to build credit? Also, where would I get a charge card? All I want is a card to help me build credit and order stuff online.

Well, I thought that my PaineWebber card was a true credit card since the money was taken out monthly and not at the time of the charge. However, seeing as how I have no credit, the card might as well be a debit card.

 

[crt1530]

APR and payback bonuses don't matter to me. All I want is a card with a decent limit and no annual fee (preferably).