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I am 19, turning 20 next month. I have zero credit history.

i am entering the adult world.. where you cant do anything unless you have a good credit score…

how do i start building credit?

5 Thoughts on How do i build good credit?
  1. Reply
    Smoovy Loco
    November 5, 2011 at 4:26 pm

    1. Open a checking account- While opening the account doesn’t directly build your credit, it does create a relationship between you and the bank by being an accountholder. Banks love to cater to their preferred customers that have accounts in great standing by offering loans and credit cards. Also, having a checking account not only helps manage your money, but it gives you the most powerful tool in building credit, a checking account to help pay your bills on time. Most banks and credit unions offer online banking with billpay that can make it easy for you to pay your bills on time, which is important in building credit.

    2. Open a secured credit card- Secured credit cards are the easiest credit cards to get, mainly becuase a security deposit is placed upfront in order to establish a line of credit in the same amount. For example, if you deposit $ 250, your credit limit is $ 250, and so on. The deposit isn’t used to pay for any of the purchsases on the card unless, it was charged off and sent to collections, so you would have to repay it just like a regular card either in full or minimum monthly payments. The deposit is sometimes linked to a savings account, so it earns interest while you’re building credit, so the deposit isn’t sitting there. You can think of this as building credit with a savings account. The more you deposit, the higher your limit, which is good for your score because it creates a cushion between the total debt you owe and the credit you have available. Also, by continuing to add to the deposit, you’re also creating an emergency fund at the same time. A good way of using the card is by making small purchases ($ 20/month max) and paying on time every month while adding to the deposit. Usually after a year or so, the card either converts or upgrades to a regular card, and most importantly, the deposit is given back, which you can place in a savings account as an emergency fund.

    3. Enroll with PRBC- PRBC is America’s Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus:

    Natural Gas
    Cell Phone

    The only time your payments for these bills are reported to the other credit bureaus is if they’re missing or late.With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history. PRBC offers two simple ways to start building credit today.

  2. Reply
    November 5, 2011 at 4:27 pm

    Go to your bank and apply for a credit card. You may have to start with a secured card — you deposit X which is held as collateral for the card. Use the card and pay it in full every month. After 6 months or so, you should be able to get a regular credit card.

    Most important thing is to ALWAYS pay all your bills on time. Being “only one day late” is the same as being only a little bit pregnant.

  3. Reply
    michael a
    November 5, 2011 at 5:15 pm

    open a bunch of credit cards and buy stuff and then pay them back on time.

  4. Reply
    November 5, 2011 at 5:42 pm

    Open up a checking account.

    Don’t believe the lie. It is possible to live well even with no credit. Check out a book: “The Total Money Makeover” by Dave Ramsey. He’s a multi-millionaire, but his FICO score is zero.

  5. Reply
    November 5, 2011 at 6:15 pm

    First, there are so many ways to build good credits. House, phones, light bills and others can help you establish credits. Second, if you want to go for a credit card, you must understand what it is and how to use it wisely.
    Credit card is another way of building credit faster and at the same time, can put you in debt. If this is going to be your first time, try going for a card with no credit history.
    A balance transfer card would be could if after using it, you pay the balance. Low interest card are always good. Cards with rewards are very good. An example of such reward would be a cash back.
    If credit card is what you want to go for, do research and decide which card is best for you.
    You can read more on cards such as Discover, American Express, Visa, MasterCard, Pulaski, Bank of America, Captial One and much more at
    All the best to you.

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