What is the best way to establish credit ?

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  • mahoney
    Confirmed User
    • Nov 2003
    • 5318

    #1

    What is the best way to establish credit ?

    I am trying to help a friend of mine establish credit. She is new in the usa and is having a hard time. I gave her my 2 cents but any advice would be appreciated.
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  • Semi-Retired-Dave
    Too lazy to set a custom title
    • Apr 2004
    • 11190

    #2
    Buy something and pay the payments on time. Or be a co-signer on something with her.
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    • sheldonjuan
      Confirmed User
      • Sep 2003
      • 875

      #3
      get department store/service station or if she can credit cards and pay off the full amount each month.. even if its a pack of gum

      good luck
      fuck it, I dont need a sig!

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      • detoxed
        vip member
        • Jan 2003
        • 17798

        #4
        Get a secured credit card. Put down $1000 deposit for $1000 limit and they will report it to the credit bureaus. Easiest way to build credit from nothing.

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        • StuartD
          Sofa King Band
          • Jul 2002
          • 29903

          #5
          buy stuff, pay it off.

          rinse, lather, repeat.
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          • detoxed
            vip member
            • Jan 2003
            • 17798

            #6
            Originally posted by MaskedMan
            buy stuff, pay it off.

            rinse, lather, repeat.
            have to have credit for that

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            • StuartD
              Sofa King Band
              • Jul 2002
              • 29903

              #7
              Originally posted by detoxed
              have to have credit for that
              You can get credit cards without credit. Just not very good ones.
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              • nojob
                The Original NoJob
                • Feb 2004
                • 3682

                #8
                there are many secured credit cards that she can get that will help establish positive trade lines in her credit.

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                • notjoe
                  Confirmed User
                  • May 2002
                  • 5599

                  #9
                  Originally posted by mahoney
                  I am trying to help a friend of mine establish credit. She is new in the usa and is having a hard time. I gave her my 2 cents but any advice would be appreciated.
                  *EDIT*
                  What detoxed said..

                  A few credit cards might help to speed things along quicker though since it shows she can handle multiple things instead of only one... better to have more positive info than none!
                  Last edited by notjoe; 06-16-2004, 03:44 PM.

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                  • evl4fun
                    Confirmed User
                    • Jul 2003
                    • 372

                    #10
                    Secured cc's are an ok way to start, but you can get normal ones with high interest rates and service fees to start out. DO NOT pay off the full amount every month, cc companys frown on this because they dont make thier interest $$. Instead, get a small line cc (secured or otherwise) and make the min monthly payments for 3-6 months, check the fine print in the contract to see how often they review the accounts. DO NOT max it out anytime in the first year, keep balance roughly half of the available credit line.
                    If she needs a car, thier are tons of first time buyers credit programs. Stay away from the "buy here-pay here" places, as most of them do not report to credit agentcys,unless the account goes into the negative. I know most major car companies, Ford, GM,ect have good programs.
                    Store cc's from places like sears, J.C.Pennys ect are also fairly easy to get, just follow the same tips as normal cc's.
                    Following those tips, should result in at least an "A" credit rateing with in a year, and "AAA" in under five.
                    Hope that helps.

                    If you spend all day worrying about what happened yesterday.....then tommorow will suck too.

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                    • Nbritte
                      Confirmed User
                      • Sep 2001
                      • 689

                      #11
                      goto the bank get a 1k loan for 12 month term take the money put it in a CD for the bank for collateral. Wait 6 months do it a second time make all the payments on time. 18 months you should have decent credit at very little cost. I did that when I was 18 and purchased a 15k car with no co-signer and no money down when I was 20

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                      • WWC
                        #1 Adult Content Provider
                        • Jul 2003
                        • 11577

                        #12
                        Get credit cards....
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