figured out a way to get good credit that deals with anime

[desperado]

ok im going to be a senior next year, and im definetly going to need a student loan for college. for that ill get better luck if i have good credit history.

here is what i came up with. i plan on getting a credit card and buying one or two animes a month (or some other odds and ends) and then promptly pay it off. if i keep this up i should get excellent credit history. what do you all think?

[Arnobius]

Operational word is *if*

I got myself into some serious trouble because I bought more than I paid back. It isn't a good idea to use cards for trivial things.

Do you need a credit rating to get a college loan now? I thought those were guaranteed by the gov't and so long as you were enrolled in classes, you were allowed to borrow a certain ammount of money a year (still paying those off myself). Have they changed the laws?

Anyway, be careful with debt. It can cause you troubl in the future

[termyt]

That's not a bad way to begin a credit history. Credit comes pretty easily to college students, though.

Some tips:
Don't open too many accounts. The total credit you have counts against the amount a bank will be willing to lend you. (For example, if you have 10 credit cards each with a $5000 limit, the bank will see that you have $50,000 available to you in credit. If you only make $10,000 per year, you become a credit risk).

You want to use the credit you have. Leaving inactive accounts lying around makes you less attractive as a credit risk. Having some debt is also considered healthy, but I personally don't advocate keeping a balance on your credit cards.

Make your payments (to debtors that "matter") on time every month. What I mean by "matter" is basically banks. Make loan payments and credit card payments on time at all costs or your credit rate will suffer. Other bills - like phone, electricity, gas, etc are not included in your credit rating. I'm not advocating not paying your utilities, mind you. Just that non-payment does not affect your credit rating.

[agasfas]

Ohh, the more you put on your card, then pay it all off in full at the end of the month, the better your credit will be. ANd it usually takes more then 3-4month to build a decent credit. So, if you get a card and only charge a few bucks, then pay if off, your credit really doesn't change. Though, it's smart to not charge more then what you can pay.

To to maintain a good credit, it'svital to always pay off your credit at the end of the month, each and every month... You don't really need much credit for student loans, but hey, good luck.

[desperado]

yeah thats what im saying buy a book or a dvd every month then as soon as you order it pay it off.

[Tsukuyomi]

I never had a credit card, but I think u can do it. Just keep you balances in check. Keep track of what u've bought and buget it out. It could work, just tell yourself,"No more then three animes a month!" or something like that heh heh!

[Azier the Swordsman]

This brings up a question I wonder if someone can answer for me: I never use or have used a credit card in my life. I assume this means I have zero credit. Is it a bad idea to never use a credit card and have zero credit my whole life? Or do I need credit for certain things that may come up in the future?

[shooraijin]

I think you mean "zero credit score" and the answer is, in order, no, not true, and yes. Zero credit scores are because you screwed up and didn't pay bills on outstanding credit (in other words, you are an unbelievably bad credit risk and no one will lend you *anything*). Because you have no black marks on your record, your credit score (typically a FICO score, only one way -- but the most common way -- of computing credit worthiness) isn't zero; it's just not crash high because you haven't demonstrated any payment history either. So you would qualify for relatively modest limits or so-so interest rates, for example, particularly with companies that heavily target the young adult bracket.

FICO scores are proprietary and only vague things are known about how they are computed, but accounts other than credit cards and loans can be taken into account, such as utility bills, monthly finances, rental history, and so on. So other ways of building a good credit profile apart from actual credit might include having an apartment and keeping current on the rent; keeping current on your utility bills; etc. However, having a credit card with a limit you know you can't get into trouble with -- say, $500 -- and paying it off monthly also builds you good credit, and you'll need that credit for home loans, car loans, small principal financing, etc. Plus, with good credit, the deposits required for certain things, such as new accounts with utility companies or down payments on big-ticket items, are typically less; you can also, as I have, demand better rates from your credit card companies. I got mine to drop from 19.88% to 12.6% by waving a competing offer under their nose and threatening to close the account with a balance transfer.

IOW, good credit is worth it for other reasons than simply getting more credit.