What would start me on a good credit score?

diamantella: What would start me on a good credit score?
I’m approaching my last semester in University now and will enter the working world hopefully the mid of next year. I’m now starting to think of investing and financing issues.

One particular thing I always come across is “good credit score”. I have never been in debt. My fees are paid for by my parents who have set up funds since I was a baby. My expenses are financed through my own part-time job. I have a little savings on the sides. I’m not even sure what my credit score is, but will it be right in saying I have none?

How do one get “good credit score”?

Answers and Views:

Answer by INFINITY
Get a credit card and pay it off monthly. American Express is a good one because they require you to pay it off monthly. This will give you credit, because it sounds as if you may not have any credit established yet. It sounds crazy but no credit history can be as bad as bad credit.

Oh and don’t apply for too many cards because each time you apply for credit they check your credit and it is kept in your credit records how many credit checks you have and that counts against your credit score. Too many credit checks looks bad on your credit. Go to your bank and apply for a home loan, it’s free and they’ll check your credit and then you can find out your credit score and not take the loan unless of course you need it. (if your approved)

Answer by crispy
I ran into this problem as a young adult. You could start establishing a credit history by buying things on a credit card or loan. Something that shows repayment and a track record of your financial responsibility. I started out by getting a department store credit card. I bought some things and then paid off the balance each month. I still had no credit score. Then I was advised to buy something and not pay the entire bill, but let a little carry over each month. That did show up- and from there I was able to get a major credit card. Hope that helps.

Answer by d.sutton80
I like the answer thus far and it is a good idea to get 1 credit card on ONLY ONE. Pay it off each month or pay it down low. Use it on things you already purchase – gas and groceries.

Something not mentioned that I think it was a great idea to build credit – a CD secured loan. Two ways to do it. 1. If you already have a couple of grand or more saved up, put the money in a CD and have the bank/credit union let you borrow against the CD. You can pay it monthly from the money they give you and it is generally about 3% more than the CD interest rate. You basically are paying the bank to build your credit.

2. You don’t have a couple of grand saved up. So let the bank give you the money and they will tie it into one of their own CDs. You have to pay off the loan with your own income and the interest rate may be higher. Do that for about 12 months and your score will shoot up!

Good luck!

Answer by heybulldog
Don’t start obsessing with the I love debt score. All it will get you is in debt.
You have to borrow money and make payments on time to get a high score. You have to KEEP borrowing money and KEEP making paymnets on time to KEEP a high score.

Pay as you go and live on less than you make and you will have money. If you have money. You dont need to borrow. If you dont need to borrow. You dont have to worship at the alter of the almighty fico score.
A low score from not paying your bills is one thing. If you have a 0 score from not borrowing money. You can still get an apartment and job and a home loan with manual underwriting. The way it was done before the I love debt score. It’s not a sub prime loan. You can get the same low interest rates.

Of course if you listen to these bankers and their loyal followers, they will tell you to borrow, borrow, borrow.

Debt free is the way to be!

No payments = cash in the bank!

Answer by sdc2027
Unfortunately it is a catch-22
In order to get a good score you have to take out credit and yet, that credit can be the bane of your existence if you don’t pay on time
The best bet is to contact your bank and get a low interest credit card from them. Just opening up a card and using it once – then paying it off will notify the credit agencies that you are using credit and a good credit risk – this will give you a good credit score.