Hi just a little on me I am 22 years old male and until recently I never needed to worry about credit. I had always used cash and never worrying about having to appropriate credit to purchase items. Now I don't know how to establish credit with out going in to debt? And how do I go about doing this? Thank you

Do you have any monthly bills you pay off like cell phone, internet, cable TV, utilities, car insurance, car payment?

Do not get a credit card or rent a center type thing because they are rip offs and you may end up with bad credit.

My first credit card was a gas card. Buy gas and pay it off at the end of the month

I disagree with the quick qoute you receive. The best way to establish credit is through credit cards. Get one but don't use it until you have the money to pay the bill in full or at least two to three payments. If you have a car payment never be late. Please be sure to under that a person with bad credit has better credit than you because they have at least establish credit.

Yeah IF you can pay off credit cards IN FULL monthly then there is no problem with getting a credit card but many people fall behind and end up with bad credit.

**OP DID say the smartest way, Not knowing their financial situation I wouldn't say credit cards are the smartest way.

Gas credit card is always a solid way to establish credit. Buy gas, pay card in FULL at the end of the month. After doing that for a while, apply for a low limit card designed for people with little or no credit. Most banks have cards like that. NEVER carry a balance of more than 25% of the credit line over the payment period. Pay in full is always the best way.

As time passes, they will raise your credit limit, but do not change your spending habits. Rememember, credit is a convienience, not actual money.

Smart way is to open a saving account at a bank, deposit $500.00 to $1000 in that account. Wait about 2 month, go to that bank ask for a personal loan, and use the saving account as security for the loan.

Than do not spend the money from the loan, use it to pay the loan back for 8 months or more, than pay the loan off.

You will have than shown you are able to make payments on time and even pay early.

Repeat this same process at another bank and you would than established a very good credit rating.

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Originally Posted by reading1

I disagree with the quick qoute you recieve. The best way to establish credit is through credit cards. Get one but don't use it until you have the money to pay the bill in full or atleast two to three payments. If you have a car payment never be late. Please be sure to under that a person with bad credit has better credit than you because they have atleast establish credit.

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In your eyes bad credit is BETTER than no credit? I find this confusing. Can you explain a little?