How do I get credit to make purchases?
By mariahbowles
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One of the best ways to establish a credit rating is to get a credit card, and pay it off IN FULL every month. Another way to establish a good credit rating is to save up a down payment for something you need, such as a car. Then when you purchase the car, after getting the loan from the dealer or the bank, then you must absolutely make all the payments on time and for the full amount.
Do not go to payday loan places, or borrow from places who will lend you money regardless of your income, your net worth, your credit rating. Those sorts of places prey on people.
Most banks or dealerships will lend you money on a car, if you have a good job and a down payment, even if it is your first loan, because the car has value and they can take it back. However, even with this, you usually have to have a co-signer.
If you wish to get credit so that you can purchase a bunch of stuff that you can't really afford, or go on expensive vacations, or buy a bunch of stuff like expensive purses and shoes, or blow it on expensive meals and booze, you are better off not getting credit.
If you have no past credit (of any kind) it is sometimes difficult to get a new credit card with a bank (with low interest rate) even if you have a job. They look at where you are living (buying, renting, school, parents) as well as how long you have been working (how many times have you changed jobs?) and other things.
Most financial people say it is best to go to your bank and apply for a "credit" loan. That is - you put 100.00 in an account and then you ask for a "credit" loan of 90.00 against your saving of 100.00. Then you pay this off in monthly payment (whatever amount is set up) until it is paid off. Then try to add more money to your savings and borrow against it again. Do this for at least one year and you will be well on your way to getting a good credit card.
Try to always pay any bill (utilities, rent/mortgage, local stores, cable) on time as credit agencies know a lot about people and they check all of these for your payment history.
Usually a Walmart card (with money) does no good but there can be exceptions. If you acquire a credit card, try to always remain in the lower 25 to 50% of the top figure you have available.
If you are trying to build credit then you should maybe make payments and not pay it off each month - at least for the first 6 months to a year.
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