How to build credit?

paradigm said:
easy ways to build credit (i'm sure you'll get tons of responses on this):



1. use a credit card



--i use a credit card for nearly every purchase i make. not only it is convenient, but i only have to do one transaction online a month to pay most of my bills. i also get cash back at the end of the year, so it's nice. DO NOT carry a balance...only use it for convenience. pay it off every month. this will build a track record for your credit.
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Start off with a $1500 credit limit, the credit card company will automatically increase this credit in the coming years once they see that you are able pay monthly minimum, but pay as much or all of it if you can. Once they give you up to $10,000 then go to your bank and ask for a line of credit that is double of what your credit card is offering you with lower interest rates.
 
My son took out a $1000 co-signed loan at his local bank and paid it off in 6 months. Took out another one in his own name for the same amount and is paying it off quickly too. After he has made the payments on his car for a year, his Grandmother (who co-signed the loan) will have her name removed from the loan and it will be fully in his name. My son is now inundated with credit card offers but so far only got one for gas.
 
Johnny, I don't know what it's like now that gas stations take all kinds of credit cards, but when I was in your situation and getting turned down for credit cards, the only ones I could get were gas company cards. My theory at the time was how many tanks of gas or car repairs can you buy a month (as opposed to the plethora of stuff you can get with any other kind of card), which gave the issuer confidence you wouldn't over extend yourself. Once you have some kind of credit card and pay it promptly it's easier to get other kinds of credit. My $.02
 
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