re: Best way to build a credit score?

quote:

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I also have 32k in the bank, and 10k in a Roth IRA. I would think that plus no debt would be enough to overcome my credit history.

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Nope. The banks/finance companies have no way of knowing how you got that money--it could have been inherited, a cash settlement, or even a lotto scratcher. You're still a risk because you haven't ever demonstrated that you will pay back the money you owe. A solid payment history is a crucial part of establishing good credit. And $32K is not the kind of scratch that will make a bank overlook your lack of payment history. (If you were trying to buy a $100K house with $150K in the bank, they would happily offer you a loan.)

So if you don't qualify for the 0% through various vendors, then join a credit union (usually have the best rates) and borrow a small amount to purchase those needed items. Pay the loan off early to minimize your interest expenses, and be patient while your score goes up. It may take 18-24 mos. Meanwhile, saving more money will never, ever hurt your credit.