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What are some good books for college graduates to learn to establish credit effectively?
Posted on 8/27/17 at 2:36 pm
Posted on 8/27/17 at 2:36 pm
For some context, I have no student loans and I was given my fathers old truck. So I don't have any credit, I'm a mechanical engineer and I have an apartment, but like I said I have no credit. I want to save as much as I can early, and learn how I can establish a good credit score effective amount of time. TIA
Posted on 8/27/17 at 2:44 pm to RagingCajun3195
You really don't need to read any books I'd say. Just open a low cost or free credit card, use 10-20% of your credit line and pay it off each month. Within a year you'll be sitting pretty.
Posted on 8/27/17 at 2:55 pm to jimbeam
quote:
Just open a low cost or free credit card, use 10-20% of your credit line and pay it off each month
You don't even need to use the CCs anymore. Just opening a CC that is known to report monthly regardless of activity is sufficient (e.g Discover)
Years ago, CC companies only reported accounts that showed activity (i.e report balance). So in order to get that month of good standing you had to use the card. Now most major CC issuers batch report all accts regardless of use
A lot of the old "tips"of credit scores need minor modifications for the modern credit score reporting
Posted on 8/27/17 at 3:41 pm to RagingCajun3195
1. Get a free CC with 1-1.5% cash back
2. Pay your rent/expenses with it.
3. Pay it off in full each month.
4. ?????
5. Profit
2. Pay your rent/expenses with it.
3. Pay it off in full each month.
4. ?????
5. Profit
Posted on 8/27/17 at 4:52 pm to RagingCajun3195
1. Open a CC
2. Run it up with bar tabs
3. Pay the monthly minimum.
4. Max it out.
5. Spend a few years paying it off.
6. Learns valuable life lesson.
7. Profit
2. Run it up with bar tabs
3. Pay the monthly minimum.
4. Max it out.
5. Spend a few years paying it off.
6. Learns valuable life lesson.
7. Profit
Posted on 8/27/17 at 5:40 pm to dkreller
quote:
1. Open a CC
2. Run it up with bar tabs
3. Pay the monthly minimum.
4. Max it out.
5. Spend a few years paying it off.
6. Learns valuable life lesson.
7. Profit
So long as you're never late more than 30 days with a payment, this works quite well. Of course, it will be very expensive with all the interest you're paying but your credit rating will be just fine.
Well, except for #4, if you're using all your credit then your record takes a temporary hit due to the high utilization rate. But once you do pay it off then it's like it never happened.
Posted on 8/27/17 at 6:24 pm to RagingCajun3195
Open a few credit cards, keep them paid off
Posted on 8/27/17 at 9:25 pm to RagingCajun3195
You don't need a book...or to do anything special other than to use common sense. I was in exactly the same situation as you when I graduated and when I decided to buy my first house, my credit score was shockingly good.
Get yourself a credit card and flush some business expenses and/or household expenses through it...pay it off every month so there is no charge or interest.
also, if you have student loans, pay them off at a reasonable rate when the interest starts to accrue.
do those couple of things and your credit will be golden.
Get yourself a credit card and flush some business expenses and/or household expenses through it...pay it off every month so there is no charge or interest.
also, if you have student loans, pay them off at a reasonable rate when the interest starts to accrue.
do those couple of things and your credit will be golden.
Posted on 8/30/17 at 9:03 am to RagingCajun3195
Go open a Discover credit card. Use it to pay for everything you normally would use your debit card for. Pay it off completely when each statement is ready. You'll build up credit, and you'll make a bit of money on rewards points. I'm in the same boat as you. Opened a Discover Student account my junior year of college, 4 years later I have a ~760 credit score
Posted on 8/30/17 at 9:06 am to Upperdecker
Also pay attention to credit limits. It's the main difference between a credit and debit card (that isn't obvious). Your credit limit will start very low, so be careful not to exceed it. When you get to your limit, pay it off, and it will reset in a couple days. Then repeat as needed
Posted on 8/30/17 at 3:54 pm to RagingCajun3195
Total Money Makeover
Posted on 8/31/17 at 2:17 pm to RagingCajun3195
Man its hard to get a credit card these days when you have zero credit history. At least coming from a bankers perspective. The three banks ive worked for make it nearly impossible for someone with no cresit to get approved for anything.
Can't speak for online banks and credit card companies though.
Can't speak for online banks and credit card companies though.
This post was edited on 8/31/17 at 2:21 pm
Posted on 9/2/17 at 5:07 am to UMRealist
I registered my kid for a Southwest Rapid Rewards number to make flying easier. Now I have to shred the monthly offers they send to the house, for the kid.
You may give that a try. Register for SWRR's for free and see if you get offers.
You may give that a try. Register for SWRR's for free and see if you get offers.
This post was edited on 9/2/17 at 5:08 am
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