Go to a bank, find out what is the smallest personal loan they'll give you. Usually it'll be around $1000. Just make sure that it's longer than 6 months. Any loan longer than 6 months will work.
Then get a coupon book from the banker. Take the loan money and make 1 payment *per week* for the first 4 weeks, then pay the balance off once per month (keeping in mind the 6 month minimum - anything less than 6 months might not show up on your credit report). Repeat ad nauseum when it's repaid. Always go to the same bank (or couple of banks) and deal with the same people.
1) You build up an EXCELLENT credit rating this way and
2) if they want a credit reference, give them the name and bank you deal with, who will positively GUSH your praises about "paying better than promised".
Total risk = 0 (except for the small service charge, as you're using the loan to pay off the loan, and if you have a excellent interest bearing account, you may even MAKE money).
Benefits = Bank lists your credit as orgasmic, and you have a personal point of credit reference if you ever need it.
And best, you don't need any credit cards. The store cards like RS and VS are nice, but they're the LOW END of the credit spectrum when someones running a report on you.
They are useful, which is why I suggested keeping one, but remember that the more cards you have, even if you pay them all off, the worse your credit rating is (not because you DO owe, but because the size of their accumulated limits). |
