How to get a credit score (A Good One)

Discussion in 'Business, Careers & Education' started by JBG89, Oct 28, 2010.

  1. JBG89

    JBG89 Senior member

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    As of today I officially have zero credit.

    What would be the best starting way to get a good credit score? I was suggested obtaining a credit card, and paying it off.

    Should I pay it off 100% each month or leave a bit to build? I've heard both told to me.


    Additionally, would anyone recommend a specific card? AMEX would not give me one due to my lack of credit. Should I take a card at the bank at which I am currently holding my checking #?

    PS* I am currently a student.

    Thanks
     


  2. Saltricks

    Saltricks Senior member

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    start one with macys/ discover etc.

    something that has low barriers to entry
    never close it, this will be your oldest card and the basis of your credit history

    Your credit score/ FICO score is based on these ratios:

    Payment history - 35%
    Amounts owed - 30%
    Length of credit history - 15%
    New credit - 10%
    Types of credit used - 10%

    So ideally, you want to have some sort of balance that you pay off every month, keep your max credit/balance under 20 percent, and try to open cards to increase your max credit which reduces your credit/balance ratio. Never pay late.
     


  3. globetrotter

    globetrotter Senior member

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    +1 on macys - when we moved to the states, we got macys cards and worked up from there
     


  4. otc

    otc Senior member

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    Can't you get a standard student visa/mastercard? Most people are able to get those with something like a $500 limit without issue. This may be that they have student loan accounts though (which appear as some form of credit) so if you have absolutely zero credit, it might be hard to get a student account.

    If you seriously can't get a student account, then try one of those "secured visa" cards where you basically pay in advance but slowly build credit until you can get a normal card.

    Should I pay it off 100% each month or leave a bit to build? I've heard both told to me.

    100% in full every month.

    Don't try to get an AMEX...your first card should be a visa or MC as they are accepted everywhere.
     


  5. ramuman

    ramuman Senior member

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    Get Visa or MC and try to get the highest credit line you can. Then use as little of it as you can and pay off that in full every month.
     


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