Question:
What I am going to do for right now cause here in like 5 months I'm going to the military. I will pay the cox internet bill, get a credit card and pay my bills on time, and buy a car.
what other ways or what other things should I do or know about raising my credit from no credit to a good starting credit score?
Answers:
If you go with your parents credit card thing just make sure that they make you a joint or co-signer and not a authorized user.
Come September of this year authorized users will no longer get any additional points because FICO is going to change the way credit scores are calculated and it's going to be retroactive so anyone who has received additional points in the past will lose them.
If you go with your own cred card, just use it for everyday things like gas and food being careful never to exceed 30% of your limit in any given month and pay in full before the due date every month.
This will do two things, first it will establish a pay history and second it will keep your debt to credit ratio low. Thses two things alone make up 65% of your credit score.
As far as getting a credit card, I'd suggest you get a Pre Paid Mastercard or Visa and make sure it's one of those that report your spending habits to the three major credit bureaus.
Another thing you can do is place 10% of your pay in a savings account every month and don't touch it for approximately five years.
This money can be used as a down payment on your own house.
On the car,get something dependable instead of luxury or fancy looking; even if you have to start off with something used.
Assuming that your parents have good credit, have one of them add you as a co-borrower on thier account. After that takes place, apply for a credit card from a bank. Pay your bill in full each month. Do not charge more than you can pay off. You do not need to carry a blance over time on a credit card in order to build up a good credit history.
This will put you on the road to a good credit score.
good luck
What Michael K said is right and here is why. Say your parents have great credit. If they add you as an additional card holder then you will automatically have their payment history for that card. So in a few months if somebody pulls up your history you will have a long history off payments. It's the only loop hole that creditors haven't sealed yet.
Just pay every credit card bill on time, keep your balances at zero, or very low, and don't take out more than one!
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Good Luck!
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