Whats the best way to build a good credit score?

I want to build my credit but I have none since I just turned 18 a few months ago. I wanted to get a credit card to help build it and to use purely for emergencies but of course none of the companies will approve me, how can I start building my score?

Public Comments

1. Paying your bills on time can quickly help your credit. Try getting something small and pay it off before time or on time that also will help build good credit. Keep trying and someone will accept, this is when you should never be later in paying.
2. pay your bills on time.
3. You can get one of those "baby" credit cards (that's what they call them). You basically open an account and can only draw on the money you have. It's like a savings account only this will help to establish your FIRST credit card---and a history. When I was 18, the first credit card I got sucessfully was for Sears. Once you start showing just one credit card company that you pay on time--you will start to get offers from other credit card companies. You can also open a savings/checking account with a reputable bank---and get an ATM to draw on the money if you really need a credit card. Establishing a good credit history with your bank is probably the easiest way to begin your credit history. Check out this really good article as well http://financialplan.about.com/od/creditdebtmanagement/a/nocredit.htm
4. Do you bank with a Credit Union? If not, go open a checking account at a local Credit Union. Once you have had your checking account for a few months apply for a credit card with them. Credit Unions have some of the lowest rates for credit cards. If they won't give you a credit card, you could also just take out a small loan with them (like $100), but don't spend it, hold onto the money, and then when it comes due, pay it all back. You'll pay a little interest, but not much for a short length of time (say three months). After that you could then try applying for one of their credit cards. Avoid predatory lenders like Capital One and HSBC, also known as Orchard Bank. They would like nothing better than to screw you over, don't learn the hard way like I did. HSBC/Orchard has exhorbitant interest rates and fees, and Capital One does not report your available credit, only the highest balance you've ever had which hurts your credit score. Don't be tempted, use credit wisely. Build your credit in other ways, then when you have good credit get prime credit cards. edit: And you could try Sears, their interest rate isn't the best...but then come to think of it, that was my first credit card too!
5. The best way is to open a CD at a bank, then take a "loan" against the CD. It's basically a cash secured loan. You give them $1,000 or whatever they require, then they will give you the $1,000 right back in the form of a loan check, then you will make monthly payments back to the loan. When the loan is paid off, you can cash out the CD if you want...or start the whole process over again. Because you are securing this loan with cash, they many times will not even run your credit (maybe just for curiousity). Keep in mind, for a loan/credit card to effect your credit in a positive way, you must hold the account for over 12 months or you have completely wasted your time. There is usually a financing fee (added to the loan) for $60 or so...but if you can't get anyone to give you an unsecured loan (credit card) this may be a way to go. Some banks will do this for less cash to help out customers...like $500 instead of $1,000. Don't be afraid to ask.
6. Are you a college student? A lot of banks have special credit programs just for students that will help you get going with a card with a small credit line (~$1000). If not, and no banks will otherwise approve you, you can always get a secured credit card, which basically means that you give them a cash deposit equal to what you want your credit limit to be. That way, if you don't pay your bills, they'll still have their money from your deposit. The key is to pay your bills on time once you do get a card, whatever way you end up getting one. BTW, your credit will be better if you actually use the card on a regular basis and pay it off each month, rather than never using it, except only for emergencies. If they see you can *use* your credit properly, they will increase your credit line. And the more credit you have extended to you, the higher your score will go.
7. Dont play the credit card game. They make all the rules and can change the rules in the middle of the game. Just read the fine print. And it is a game. If you play the credit card game sooner or later you will start losing. Once you start losing at the credit card game it's hard to get out of the game. High interest rates that they can raise for any reason. Again, read the fine print. Outrageous late fees and over the limit fees. Not to mention identity theft which is on the rise. Pay as you go and live on less than you make and you will win with money. A low score from not paying your bills is trouble. If you have a 0 score from not borrowing money you can still get an apartment and job and home loan with manual underwriting. The way it was done before the I love debt score came along. It's not a sub prime loan. You can get the same low interest rates. Of course the bankers on here and their loyal followers are gonna tell you different. But, debt free is the way to be!
8. you could get a small personal loan and pay it off in a few months or you could get a credit card and use it for small purchases and pay it off at the end of the month that way you do not pay interest and you are buildig credit, check out www.fastcreditcardapprovals.com here you will be able to compare all major credit cards side by side on rates and rewards. GOOD, BAD OR NO CREDIT they have the right card for you.