How to build credit

[SenatorKevin]

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I'd like to know some ways in which I can build a good credit rating. I've never had a cc or taken out a loan.

I've never needed a cc and don't think I'll ever need one. I just want to get a good credit rating so that I can start doing the App-O-Rama. I'm intrigued by anything that involves legally making money without working.

I've done some searching, and people recommend getting a cc where you deposit like $500 and then that's your credit limit. I'd rather not do that because I don't want to tie up $500 unnecessarily. I hope there's another way.

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Ron,

You need pretty good credit to do an app-o-rama that is worth the effort. Check out your credit score on one of the sites. If it is good, apply for one credit card and begin charging and paying off the balance each month. Talking to your present bank was a great idea. They might be able to get you setup with a non-secured credit card right off the bat depending on your credit score.

Everyone who is responsible with money should have a credit card. You are basically losing 1-2% on every transaction by paying cash or using a debit card.

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Your credit score gets cripled if you have more than 3 "applications" on your record within 12 months and goes down for every additional credit card you have over 4. Your method might work but its very short sided and likely to dry up with the ongoing credit crunch.

[SenatorKevin]

Look, if the OP isn't willing to setup a 500 dollar secured credit card for six months then he's never going to get anywhere. I setup a secured card when I was 18 and got the money back after six months of good payments and hard the card bumped up in limits.

Assuming you live outside of California, your car insurance rates are also significantly higher if you have poor or no credit history. (California bars this practice which screws you if you have good credit)

Sure, 500 dollars is 500 bucks but sometimes doing the right thing isn't the easiest. Suck it up and just do it. You're already wayyy behind the curve if you're seriously 25 and w/o any credit history.

[Ron Burgundy]

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You're already wayyy behind the curve if you're seriously 25 and w/o any credit history.

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Behind what curve? Like I said, I don't have any use for a cc other than getting free money.

[Cubswin]

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Your credit score gets cripled if you have more than 3 "applications" on your record within 12 months

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I have 11 hard pulls and 9 new revolving lines of credit on my account all within the last 4 months. My FICO has gone from 729 to 721 during this time. Does this fit your definition of crippled?

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and goes down for every additional credit card you have over 4.

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Do you have secret insight to the Fair Isaac formula? I have 18 revolving lines of credit and after my latest round of hard pulls drop off my credit record, I'll still be eligible for the best rates should I ever need them.

[spider]

Just get one of the credit cards that gives you 1% back and pay it off every month.

How do you pay for gas?