How do I build good credit?

Im 21 years old and have no credit at all. I will be going to medical school and upon completetion I hope to start my own practice. I will need to borrow money for this endeavor for sure. My question is with good credit I can borrow more than bad credit, right? So how do i get good credit? Its hard to get my own credit card, but if I become a co-holder on one of my parents card does that build my credit? I dont mean just an authorized user. Someone told me to leave a minimal balance on my credit card each month, like $10 and keep paying it. This way it shwos that Im capable of owing money and paying it. Will this work? Im not in any hurry I have 4 years to do this, but as of right now I have no credit at all. What can I do to build good credit so I will be able to get loans to start my own practice?

Thanks to all who respond!

Pay your own bills. Open a cell account, as a co-holder you do build credit. Have a joint account with someone who already has good credit. That’s what I did.



  • Pay your own bills. Open a cell account, as a co-holder you do build credit. Have a joint account with someone who already has good credit. That’s what I did.References :

  • DO NOT PAY MINIMUM PAYMENTS on a credit card!! That is a really bad idea and whoever suggested it should be shot. To start establishing credit, you could signup for a credit card, buy one item, when the bill comes in pay it off in full. Never cancel the card just don’t use it anymore. Here are some other tips: http://www.insuremyhouse.com/credit.htmlReferences :

  • apply for 3 or 4 credit cards, which are easy to get. charge about $40 or $50 then cut them into pieces and throw them away. Make the payments. On your credit report it will show that you have 4 cards that have been used and are always paid for on time. Plus they are relatively small debt amounts so you have much more money to tap into with the credit line you can establish. In other words a creditor will say "This person has credit so people trust him, and they are making their payments on time, plus, there not overextended so they can afford to pay me bac and judging from their credit report there is a ggod chance they will pay me bacvk and on time.References :

  • Visit Experian, Equifax and Trans Union’s websites for detailed information. Not only can you borrow more with good credit you recieve better interest rates to pay over time. The most important thing to do is make good choices financially. Get a checking account, and savings account. Being a co-holder on a credit card will help but the companies don’t report how their scores are calculated exactly it is propriety information. I know that zip codes, history of paying over time and on time, length of credit history, and a stable residence and length of job history with out gaps all help. My first credit card was a store card. They have higher interest rates but don’t carry large balances and finance charges aren’t too bad. Never carry 50% of your minimum balance on any one card. Buy an inexpensive car and make payments on it. Remember length of time is key. Pay on time every time. In extreme emergencies most companies will have a 10 day grace period. Better off setting up automatic withdrawl from you checking account to make sure whenever possible. You attention is not always going to be on your bills.

    Take care,

    JenReferences : Excellant credit


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