Starting with a good credit rating?

Okay, I'm 19 and know next to nothing about credit ratings. I have a debit card linked to my bank account, but I've never had a real credit card of any kind. Can anyone tell me the basics, and how I would go about getting a good credit rating? I want to become a homeowner as soon as possible and I know I need a good credit rating.





Thanks in advance!(ten points to the best answer!)

Starting with a good credit rating?
GOOD for you....have son of 18 with good job and have spent a lot of time with him regarding this very matter.





I would see what type of credit card you can get with your actual bank.........you dont actually start out with good credit / or bad at the point you are at you have little to NO credit, it is now up to you to earn good credit.





So go into your normal bank and apply for a credit card, you may find that you have to put a $100.00 deposit on the account but the rates will be good and the are already ok with you as you have the account where they can see money in and out. Opinions vary a GREAT deal as to wether you pay off your balance each month or not,





IF you have acces or are able to join a credit union, open an account with them and have a % of your pay put into that each month / week and they often will give you better deals on loans / mortgages etc.





Remember you are allowed one FREE credit report each year.





I would also advise that you read some books by Suze Orman, she has a few aimed at young people JUST starting out like you. Another great source of info is Clarke Howard, he has a web site as well where he will answer questions,





And the final bit of advice I have always given my son / children is pay your self first..................each pay day put aside something for YOU..this is not for that pair of shoes you want badly it is more your rainy day money, but if you get in the habit NOW you will always have a cushion and any one looking at your accounts will see that no matter how bad things have got [or good] you have always managed to save.





I must say it is truely lovely to see someone focused and wish you luck in getting your first home, there is NOTHING like the feeling of being able to shut that door on the world knowing your hard work and effort made it possible.
Reply:you are welcome and truly good luck with it, have a step daughter that is 26 and her credit is a mess, with her just digging a bigger hole each time, have no intention of bailing her out any more :[ Report Abuse

Reply:First, a debit card does not help your credit. neither does rental history, utilities, cell phone, etc.





What you'll want to start with is 2 basic credit cards. You may have to get secured if you dont have ANY credit, or perhaps go with a store card (Like JC pennies or sears) in order to get approval.





ALWAYS STAY BELOW 50% OF YOUR LIMIT. This is key for your score. Utilization makes up to 35% of your score.





LONGEVITY. Dont open and close accounts a lot. Get only accounts you WANT and keep them open for a long time. HISTORY is SOOO important.





Revolving vs. Installment: You should have both 'loans' with fixed payments and revolving, which is credit cards Dont go all crazy, but 1-3 of each will help. IF you have very few accounts, your score wont move very quickly.





I had 3 credit cards opened when I was 18 and at 20 I was just hitting 700....so you really need those accounts to get going. :-)
Reply:You're on the right track. You need to establish some kind of credit, anything, and getting credit with no credit history is not easy, see "Building Credit From Scratch" for tips at http://finance-girl.blogspot.com/2006/09...





Once you get the credit, you want to build up to the best score possible which can be done through being punctual and responsible. For tips on raising your credit score see http://finance-girl.blogspot.com/2006/09...





Good luck
Reply:Good idea





You need to create a credit history.





Get a Visa or MasterCard (or any other), with no fees.





Use your card - but don't spend more than you can afford ! The idea is to pay back the entire balance every month.





This way, your credit score will improve.





Good luck !