# How do I quickly build credit score ?



## matt397 (Feb 24, 2011)

Just like the thread title says, how the hell do I build my credit back up to a decent level an quicly ? I mean Im doing everything I can think of, paying off credit debt, all my bills are always on time, yet I can't even get a simple line of credit. Sup with that ?


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## OrsusMetal (Feb 24, 2011)

Credit isn't something you can do quickly. It's like having trust with someone. If someone doesn't trust you, it usually takes a bit of time to rebuild that trust. There really isn't anyway to speed it up, just a solid reputation for paying things on time and making sure you don't have any debt.

My solution would be to get a credit card from visa or mastercard. Not one from a shop. Then just buy gas with it or something. You have to remember that credit IS NOT MONEY THAT YOU HAVE. You have to be able to HAVE the money already, then use your "credit" instead. Then pay it off right after, or within a few payments. That is how you build trust. You'll just have to stick it out man. I learned quite a bit from one of those free credit score sites. I can't remember which, but it was pretty awesome.

Edit: Also, don't close any cards you have if you have paid them off. Always keep accounts open even if you don't have a balance anymore. The banks and "credit" people look at how old your credit is to determine stuff. So by keeping credit card accounts open that are in good standing will help as well. So in a way you can't have too many credit cards. You just have to be VERY careful with them. 

There are 4 levels or credit:

Level 1 - corporate credit cards. Places you can only use that card like a department store.

Level 2 - credit cards like Visa or Mastercard. You can use these cards anywhere.

Level 3 - something where you have setup monthly payments. Usually car loans/payments with a bank. Usually fixed payments.

Level 4 - Mortgage. Things that take a LONG ass time to pay off. 


The higher the level, the better you can build or destroy your credit. I'd say start at whichever level you can get into and keep it at a good standing. You're going to need a credit score of around 700 something from what I have been told to be able to get a car loan without a co-signer. So if that is out of the picture, then try for a level 2 like at your bank or something. Maybe Capital One? If you don't get approved for one of those, go for a department store.

Or, if you don't want to sign up for anything new, just pay off everything that you owe. That should help a bit and allow banks to see that you don't have any outstanding debt. Then you would have to try for one of these credit levels later to raise it.

Sorry if it seems like I'm rambling. I did a lot of research on this stuff.


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## matt397 (Feb 24, 2011)

OrsusMetal said:


> Credit isn't something you can do quickly. It's like having trust with someone. If someone doesn't trust you, it usually takes a bit of time to rebuild that trust. There really isn't anyway to speed it up, just a solid reputation for paying things on time and making sure you don't have any debt.
> 
> My solution would be to get a credit card from visa or mastercard. Not one from a shop. Then just buy gas with it or something. You have to remember that credit IS NOT MONEY THAT YOU HAVE. You have to be able to HAVE the money already, then use your "credit" instead. Then pay it off right after, or within a few payments. That is how you build trust. You'll just have to stick it out man. I learned quite a bit from one of those free credit score sites. I can't remember which, but it was pretty awesome.
> 
> ...



This is all really good information. I appreciate it. Thing that irritates me an make me want to find an alternative approach other then more credit cards is that I have a mastercard that I am currently paying off and I have a car loan that I have _NEVER _been late on a payment for in the 3 years that I have had the loan. Would a prepaid mastercard do anything for credit score ?


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## OrsusMetal (Feb 24, 2011)

Prepaid won't. That will be more like a giftcard, I think. No use there. It can take years to repair a credit score. A lot more if it is pretty damaged.


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## Explorer (Feb 24, 2011)

Here's a technique which I've found made my credit score move to scary heights.

Two credit cards. Use one from the first of the month to the last day. Keep track of every blessed purchase. Only spend as much as you normally would if you were paying with cash.

At the end of that month, put that card away, and start using the other card from the first of that next month through to the last day. Meanwhile, tally all your purchases for that month on that card, and pay them off entirely. No credit charges will apply, since you aren't maintaining a running balance.

Keep switching and paying off the balance.

What happens is, a few of the charges from any given month aren't applied to your account until after billing closes on the prior month. By paying that charge in full, you wind up paying part of your bill early, which helps your credit score. 

Can't pay your full credit bill? Then what the fuck are you charging it for?!

You can combine this idea with an interest-bearing checking account, or a savings account which has a slightly better interest rate and the ability to do a few good transfers a month. Now you're getting interest on the money which you'll be handing to the credit card company at the end of the month..

For the win... get a credit card which gives you a certain percentage back on your purchases. Now you're earning interest on the money in your account, and then getting another percentage back at the end of the year. 

Assuming you spend at least $200 a week on expenses which you wind up charging, and earn only 1% interest and get only 1% of your purchases back, you'll earn $200 a year doing this, *and* get excellent credit. 

All of this, of course, relies on you paying your bills on time, being organized, and not fucking up. If you haven't managed to live within a budget up until now, there is no miracle solution which will teach you how to do it and gain you great credit. 

There's no magic trick involved. Follow good borrowing and bill-paying practices, and you'll prove that you deserve the better credit rating. Fuck it up, and you'll prove that there's a reason your credit score is for shit....


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## Jazzercize (Feb 25, 2011)

If you have bad or no credit a secured card is also an option. For some reason no banks near me will give me a card without a cosigner ( i have no credit history) so you just make a $300 (or more) deposit and then thats your monthly credit limit. If you default, they take the deposit, but if you are responsible they will eventually roll it into a real credit card and give you the deposit back.


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## Guitarmiester (Feb 25, 2011)

Jazzercize said:


> For some reason no banks near me will give me a card without a cosigner ( i have no credit history) so you just make a $300 (or more) deposit and then thats your monthly credit limit.



A lot of banks aren't currently in any position to take on risk, so they're denying A LOT of newcomers. 



Explorer said:


> Can't pay your full credit bill? Then what the fuck are you charging it for?!



A BIG +1 to that! It always amazed me when people want credit, yet don't have stable income. It's not about how much money you have, it's what you're doing with your money.


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