Establishing credit

For just about anything you want to get off your chest about credit cards.
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Joined: Tue Mar 23, 2010 1:55 pm
Location: Texas

Establishing credit

Postby Nuave » Tue Mar 23, 2010 2:27 pm

Hey guys. I'm new here. I'm 23 years old and I've never had a credit card. I've never had any use for one. I always keep my purchases limited to what I have and what I can save. So I have no credit. Well now I need credit, because I'm preparing to buy a house.

I realize this isn't specifically a credit card question... and I apologize if this is forum abuse. But I was wondering what would be the easiest way for me to go about establishing credit? The lender I talked to said I needed 3 lines of credit and 12 months of history. What should I do?

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Location: Texas

Postby phanio » Thu Mar 25, 2010 1:55 pm

Three trade lines is correct. This is how I did it many years ago - I got a charge card from a department store like Sears or JCPenney's - use it once - paid it off then cut up the card. Trade line 1 (I actually did this twice as there were not many options in my younger days) - For the second trade line - get a cell phone contract. For the third and you should always have a term loan on your credit - take a few hundred dollars and put it in a separate savings account. Then, use those funds as collateral for a small loan. Wait one month - use the loan funds to pay back the loan (there will be a small interest charge). Then walk away with a term loan on your credit - should last up to 7 years on there in good standing.
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