4 ms·

Like everyone has said, get a credit card and pay it in full. Ideally pay it in full before your statement comes. Many starter credit cards will have a ridiculo

Like everyone has said, get a credit card and pay it in full. Ideally pay it in full before your statement comes. Many starter credit cards will have a ridiculously low limit, my first discover card was $500. The issue with paying just on-time and not before the statement date is that discover reports your balance as of the day the statement prints so my reported available credit was always dismal. I also had some American Express charge cards, they don't have a huge affect on your credit but they may help you get an American Express credit card if you have a thin file. Once you got some credit, you can go for a car loan. I opted for a lease (since they tend to be cheaper then a new car). My current credit score tends to hover around a 720 FICO and I'm a rising junior, will probably go up a decent amount when I remember to pay my discover card in full before the statement date.

clintonb 12y ago
Wrong. Pay the bill after the statement is delivered and on/before the due date. Paying before the statement arrives means you receive a statement with a balance of $0. When reported to the credit bureaus, a $0 balance does nothing to help your credit score.
- Glyptodon 12y ago
  I don't think this works the same way for all credit cards. At least once I've had a card show that it carried more than its limit in one month on my credit report because I paid it off twice during that month. However, it hasn't happened consistently.
  - clintonb 12y ago
    If you're approaching your limit, either request an increase or, as you have done, pay it off. There very well could be inconsistencies around reporting. I am still an advocate of paying the bill on the final due date because I see credit cards as a 30 day, interest-free (assuming you pay it off), micro-loan. It makes sense to let your cash accrue as much interest as possible (although not a lot these days) in your bank account before paying off the card.

clintonb 12y ago

Wrong. Pay the bill after the statement is delivered and on/before the due date. Paying before the statement arrives means you receive a statement with a balance of $0. When reported to the credit bureaus, a $0 balance does nothing to help your credit score.

Glyptodon 12y ago
I don't think this works the same way for all credit cards. At least once I've had a card show that it carried more than its limit in one month on my credit report because I paid it off twice during that month. However, it hasn't happened consistently.
- clintonb 12y ago
  If you're approaching your limit, either request an increase or, as you have done, pay it off. There very well could be inconsistencies around reporting. I am still an advocate of paying the bill on the final due date because I see credit cards as a 30 day, interest-free (assuming you pay it off), micro-loan. It makes sense to let your cash accrue as much interest as possible (although not a lot these days) in your bank account before paying off the card.