Building A Decent Credit Score

Ruu_Old

Ok as I have been having a lot of trouble doing this since I moved to the US, I thought I would help people not go through what I have been. Heres some steps to avoid this. Credit is very important, at least in America anyway. Some of these situations are mostly for use in America, but you can apply them to anywhere. Mods you may sticky if you think its useful. So heres what you can do to build yourself a credit score seeing as you cant transfer your score from Ireland to America, in my case so you have to start from scratch.


1. Open up a checking and savings account and keep at least $100 in both accounts, lenders will see that you are at least putting money away for the future.

2. You wont get a credit card unless you have something on your report therefor you have to apply for a special type of credit card. This card is called the "secure credit card", probably offered by your local bank. It works where you deposit an amount (normally $500 min.) and it acts as your spending limit. This money is used by the bank should you fail to make payments but it gains interest and if you close the account, you get the money back. Its basically a security deposit for them.
Every month, make at least the minimum payment and the company will report to the credit companies that you have a good payment history. After a few months you will notice that card companies will start coming to you offering their cards. Dont get carried away!

3. Consider taking out a small loan from your local bank and pay it back over time but make sure to ask the bank of this loan will be reported to the credit bureaus otherwise it will be for nothing and not much use to you.

4. Pay your electrics, rent, etc on time. Alot of the things I mentioned wont go on your credit report. HOWEVER, it will go on your credit report if you fail to pay on time, so keep paying on time.