How might I be able to establish credit? I was told that paying a phone bill is one way. True or False?

I'm trying to buy a certified Honda Civic by Fall '07 and I need to establish credit, I was just wondering if paying my cell phone bill is one way without having to get a credit card or loan.How might I be able to establish credit? I was told that paying a phone bill is one way. True or False?
No, paying cell phones don't help you establish credit.





Chances are,that in a year and a half if you have no credit, you won't be able to establish enough credit by getting a few $500 credit cards to qualify for a 15K car loan. Having a credit card is probably a good idea but make sure you don't max it out. So, what should you be doing? Give the lender reasons, other than credit, to give you a bunch of money.





Start saving for a down-payment: a cash investment in the vehicle (at least 20%) shows a commitment to paying back the money they lend.





Show stability: having a long term job and long time residence helps by showing the lender that you have a stable income and they will be able to find you if you don't pay. Also, some lenders have programs for first time buyers that require at least one year at current job and residence.





Have utility bills in your name helps. Also, if you rent, get a reference from your landlord showing that you pay your rent on time every month.





If all else fails and you have parents or grandparents with good credit you can get them to co-sign.How might I be able to establish credit? I was told that paying a phone bill is one way. True or False?
Being late in paying a bill will generally negatively affect your credit. I'd suggest going to your bank and setting up a credit card that's paid automatically directly from your checking account (different from a debit card in that this one will establish your credit). It's a good choice if you're responsible enough to not overspend.
To establish credit you need to get credit.


That means you need to get a credit card. I know it is sort of hard to get one because then they ask you if you have any credit.





First try getting a credit card from stores e.g Macy's, Old Navy, Ashley Stewart, Payless etc. Also some banks when you open an account with them would give you a card.





Secondly, hold on to your hat, You need to purchase, buy, rent, consume something using the credit card and pay it back in time.





Thirdly, wait for a few months (5-6) then apply for a credit report.





The last stage is tedious but it must be done.With out this there is no car. I know the car might not be there for that long, but think of it this way better cars are being made ever day.





Good luck!!
Thats true but keeping up on all your bills is good to
There are several ways to establish credit. One way is to get a credit card (just a low limit one would be fine) - unfortunately, with no credit, it's hard to find one without an annual fee or start-up costs. I would go to orchardbank.com or first premiere credit card. We have one of each and they are wonderful people.





If you aren't firm on that Honda Civic (which is a bad choice in my opinion) You might also want to try to finance your vehicle through ford or toyota they seem to be easier on people with little or no credit. Depending on how old you are, I might want a safer vehicle than that. Maybe even a Kia???





Paying a phone bill doesn't go on your credit. You need something that will show up on your credit report.





Go here: http://financialplan.about.com/cs/credit鈥?/a> for more information, they are a great site.





Keep in mind that this won't happen overnight. It takes time to establish credit. Make sure you use your new credit card and charge things on it. Keep a small balance on it, never pay it off completely..





I hope this helps and good luck!!
keeping up with your bills makes can repair bad credit and paying off loans or furniture
There are so many ways to establish credit. There is no one single FAST way to do it though. For my suggestion, let's assume you're starting at the very beginning.





First, you should have your own checking account. Whatever you do - DO NOT bounce any checks! Second, apply for a Target guest card (I use this example because Target is local to me, and they've always been able to help my own credit). If you're approved for this card, once you receive it, all you really need to do is charge on it once, then pay the bill off as soon as it arrives. You don't even have to use it again if you don't want to (Or if you're afraid of overextending yourself again). The next thing I would do is to get a major credit card - Master Card, Visa, American Express, Discover. And once again, charge on it once, pay it off immediately, and never use it again if you don't want to (or again feel there's risk of overextending yourself) So far, you're making yourself the banks WORST customer - That's right, WORST. As long as you carry no balance and pay your bill in full, you're building up good credit, and not paying the banks any interest! Sounds crazy, doesn't it? Moving on... My recommendation is to then get a car loan for a small amount. Even if you have the cash to buy it outright, get the loan as an excercise. Again, make your payments ontime all the time, and if able to, pay a little extra each month. It will shorten the term of your loan, and reduce the total amount of interest you pay over time. Try to space each of these activities out, keeping in mind that too many inquiries too close together can make you look desperate for money. I recommend doing the checking account and Target guest card first and near the same time, and wait for 4-6 months before going for that major credit card, then waiting another 4-6 months before applying for the lar loan. Soon, you'll find yourself in good shape with terrific credit!





If you develop poor credit as a result of bouncing checks or credit card delinquency, you should also pull your credit record from all three reporting agencies - experian, Transunion and equifax. I used www.myfico.com. Once you have these, look at how each of them is reporting, and take note of any outstanding debts - pay them off and ask that they report back to the associated agencies. In addition, follow up on this once a year, or more often. What I found is that when bad credit is made right with the debtor, in many cases, they do NOT always follow up and correct it with the reporting agencies, sometimes leaving inconsistent information on your credit report, which can count against you when applying for some of the other things mentioned earlier.





One last thing - Home ownership is one of the BIGGEST investments you'll probably ever make. Again, make payments on time everytime. And if things begin looking bleak, DO NOT ALLOW a foreclosure process to be completed. SELL first! AND, avoid ever filing for bankruptcy whenever possible, as this can hurt you for a LONG time if it ever happens to you!





Good luck!
Yes, paying any bill on time is a good way to establish a credit record. Another ';low risk'; option is a kind of secured credit card you can get where the card has a limit of say $300, and you pay the $300 up front so it works more like a debit card. The lender is taking no risk, and you are building a credit record. Do you have a bank account? Go to that bank and explain what you are trying to do, they will be happy to help.
That is true about the phone bill, but it probably won't be enough to do a whole lot. You can also get a line of credit at most clothing stores and use it when you need to buy things to wear, just make sure you pay it off every month so you don't have the interest. You'll probably still not have much credit by 2007 though. It takes time and management to get really good credit.
No your cell phone bill is not a good way to establish credit.......most likely you will not be able to get that car on your own........you will need a co-signer for a loan........after your loan is paid off you will then have established credit......or if you have credit cards and you pay those on time for 2 years you will usually have a good credit score........good luck........its alot harder than it seems!
1. Paying your bills on time.


2. Paying down your debt to credit ratio.


3. Establishing credit by applying for credit.


4. Contact credit bureaus for any discrepancies found on


your credit report.
The best way to establish credit is to go to very small loan companies. Borrow $200 and pay it back in five months. That type of thing. I established my credit that way years ago, when I first turned 18. If you are always on time, or pay it off quickly, that increases your credit score. You'd be surprised what small loans can really do for your credit. Make sure you always pay all bills that report to the credit agency before the due date.