Q: Building credit is important, what are some ways people can begin to build credit?
A: We actually get this question a lot. Building a credit score is pretty easy. You need three things: one trade line, six months of payment history, and activity on that trade line in the last six months.
Q: What is a Trade Line?
A: A trade line is any credit account, like a vehicle loan or a credit card. These are the different accounts that show up on your credit report.
Q: What is the easiest way to build credit?
A: When building credit, we recommend applying for a credit card with a manageable limit. Then to build your payment history, begin charging items that you know you can pay off monthly, like gas or groceries. Make on-time payments, and ideally, pay off the balance each month for six or more months. Before you know it you will probably have reasonable credit score.
- My Money Monday, March 26 - How to build credit and get a credit score
- My Money - Tips to build your credit
- My Money Monday, Feb. 5: Raising your credit score
- My Money - Why do credit scores matter so much?
- My Money: Choosing the right credit card
- My Money - Getting your first credit card
- My Money - Paying off your credit cards
- My Money Monday, July 9 - How often to check your credit score
- My Money Monday - What happens to your credit score when you file bankruptcy?
- My Money - Differences between a bank and a credit union