Getting a Credit Card to improve my credit rating?

I have been told that my credit history, although 'perfect' does not have enough content for me to have a good credit score. I have been recommended to get a credit card, in order to 'build up' my scoring. Do I have to actually use the card for this, or is posession enough? Also, bearing in mind I don't plan to use the credit facility, and plan to pay everything off on time, what kind of card should I get?

Getting a Credit Card to improve my credit rating?
Insufficient credit can be a problem for many people, especially when first establishing credit. You do not need a credit card to build your score - a bank loan or line of credit that is paid on time will also work.





The immediate impact of getting a credit card will probably lower your credit score at first, as any new credit raises your potential risk, and credit inquiries temporarily lower your score.


Some companies like to see a small amount of revolving debt to see how you manage credit, but not too much. If you get a credit card, just get one, and make a small charge every couple of months to have it show activity. Pay this off immediately, to keep the balances low, and you will see your score improve after several months.





Avoid Capital One credit cards, as they do not report credit limits, only the highest amount ever charged, which will lower your score. Stick with large reputable companies, like American Express revolving, or even Bank of America or Chase. They all report credit limits, and they report to all credit reporting agencies.





Hope this helps.
Reply:You can visit http://www.debteraserzone.com and find very useful tips and several articles on credit card related matters. Report Abuse

Reply:Bad credit problem can be caused due to a number of situations. The credit card choices available to bad credit people allow them to rebuild their credit history. Financial products that help bad credit people are prepaid credit cards or debit cards, secured bad credit cards, unsecured bad credit cards.





Prepaid or debit cards:





These are the easiest option available for bad credit people. There are no verifications, no credit checks, no employment requirements, and the approval is instant. All they have to do is to deposit a money and a prepaid card is issued. This card has the borrowing or buying capacity equivalent to the funds deposited. The good thing with prepaid credit card is that it promotes financial discipline. Some prepaid card issuers report to various credit rating agencies, thus it helps in rebuilding your credit history. Apply online at: http://www.credit-card-gallery.com/PrePa...
Reply:When I refinanced my house I was told by the lender that having open credit cards with no balance indicates self control on the part of the card holder and the lenders like that.


If you do use the card it is best to pay it off every month. If you want to use it to build up a "history" then don't buy anything that you can't afford to pay off that month. Take the cash that would have spent on the object, put it in your savings account, then take that amount when the bill comes and use it to pay off the bill.


More important then having a good "score" is having a good income. It is particularly important to have a good income/debt ratio. Also, if you have a good income and a history of making payments on time (utilities, house, car payments) then you can get all the credit you need and you don't have to worry about your credit score.
Reply:I recommend a credit card from Chase. You can earn rewards on your purchases like cash back. If you want to apply online to here http://www.ccvault.com/credit_cards/chas...
Reply:Yes, you would need to use it so that way they can tell if you made your payments on time or not. Try to pay whatever you bought using your credit card off the first month.
Reply:I agree with most of what the 2nd poster said. While a bank loan and or a line of credit would work, the easiest way to build credit would be with a credit card. Actually, a secured credit card. You would have to put a deposit upfront to secure a credit limit of the same amount, however the deposit would gain interest while you're building credit, so you could think of this as building credit with a savings account. Periodically, you could increase the credit limit by adding to the depost which would not only increase the amount of interest you would get but also it would increase the credit line which would definitely improve your report because the high limit would demonstrate responsibility with high limits and give a sizable cushion of debt to available credit ratio which counts as 30% of your score. Keep in mind that as long as you make small purchases that are quickly paid off on time, usually after a year, the card either converts to a regular card or a better card is offered, and you get the security deposit back with interest added. Although I had offers for dozens of unsecured cards, I actually opened 2 secured cards, added to the deposits until I topped out the limits, made small purchases that I paid off in full every month before the due date, and after a year, I ended up with cards that were way better than the unsecured ones that were offered to me, not to mention I was able to move the security deposits from both into a certificate of deposit and an individual retirement account. That's my success story with those, but in your case, you may just want to open one with a limit that you're comfortable with, use it lightly, pay it off, and build credit.





I went ahead and posted links to some of the secured card sites, if you're interested.





I hope that this helps,





Good Luck!
Reply:What they are looking for is regular use. How to do it, is use it and pay it off every month. That way your score goes up and you dont pay any interest. Easiest way is a direct debit.