I have been trying to take steps to ensure that I have started a path to a good credit score before I graduate and meet someone willing to ruin it (i.e future wife)

So far I have applied and got approved for a small limit credit card from USAA that I plan on making exclusively gas purchases with every month and paying back every month. I've heard people say to pay everything but a couple dollars and keep a running debt as well as pay it off copmletely every month and just ensure you buy something the next. What is the best course of action?

Is there any other steps I can start taking in college? I have no student loans, parents gave me their old care so no payments there and can't think of any type of credit that I "need"

4 ...

Report Post

Posted by BayouBengal7391

Houston

Member since Sep 2012

72 posts

Posted on 6/12/13 at 1:06 am to GenesChin

I just graduated. Got a credit card my junior year and used it just for gas purchases like you're planning on. But I paid off the full balance each month. After about 6 months the bank increased my credit limit by 50%, so I guess my plan is working well.

Basically, I think what you're saying is a solid plan.

0 ...

Report Post

Posted by Volvagia

Fort Worth

Member since Mar 2006

51893 posts

Posted on 6/12/13 at 7:26 am to GenesChin

Putting money aside for emergency/general savings/first car purchase.

Unless your parents are willing to cosign, it can be tricky getting your first "big" loan so you want to have the cash to slap down if needed.

1 ...

Report Post

Posted by hiltacular

NYC

Member since Jan 2011

19665 posts

Posted on 6/12/13 at 8:26 am to GenesChin

quote:
So far I have applied and got approved for a small limit credit card from USAA that I plan on making exclusively gas purchases with every month and paying back every month. I've heard people say to pay everything but a couple dollars and keep a running debt as well as pay it off copmletely every month and just ensure you buy something the next. What is the best course of action?

Other than getting a credit card and paying it off, not a whole lot a college kid can do. You need to just start building your total line of credit by paying off larger and larger things as you move forward. Banks will naturally increase your credit limit (which is a good thing assuming you pay it off and means that they trust you with more money). I had a decent credit score coming out of college but still needed my dad to cosign on a car loan bc my line of credit was very low. I will be sitting pretty once my car is paid off tho as far as credit score/loc is concerned.

This post was edited on 6/12/13 at 8:30 am

0 ...

Report Post

Posted by hiltacular

NYC

Member since Jan 2011

19665 posts

Posted on 6/12/13 at 8:27 am to Volvagia

quote:
Unless your parents are willing to cosign, it can be tricky getting your first "big" loan so you want to have the cash to slap down if needed.

exactly, even with a good score, most banks wont give you a loan simply bc you dont have enough of a history. Work on paying off your cc, build capital, if you have enough capital the loan may be small enough that you wont need to cosign and from there keep building.

People make a lot of fuss about their first CC but in the long run a $500 limit on a CC is a pimple.

This post was edited on 6/12/13 at 8:32 am

0 ...

Report Post

Posted by JonTheTigerFan

Central, LA

Member since Nov 2003

6784 posts

Posted on 6/12/13 at 12:21 pm to GenesChin

Look into a credit builder loan at a credit union. I know people who have done it. Just google it and you will get the gist of it. Pretty good deal for someone trying to build a credit history.

Page 1