TheSuspensionSource

iTrader: (1)

Sign up with Credit Karma. They will tell you what credit cards to purchase. I was able to build my credit in 8 months to buy house and brand new truck.

I would make purchases with my credit cards wait til the billing cycle ended and pay 75% of the balance. Credit Karma gives you a ton of good info.

02b0wti3

iTrader: (1)

Thanks! I will look into them! Might have to give you some business for that tip! haha

custm2500

iTrader: (10)

There is some wrong info in here but most of it is good. The wrong stuff isn't particularly going to hurt your credit so I am not going to nit pick it.

You won't build much in a year but here is what you want to do primarily.

Get a major card or two and keep the balance 50% or less. Ideally 30% or less.
You starting balance will be small but in 6 months of good standing you should try to up the credit limit because larger available credit is a good thing(within reason). If you have 100,000 available and make 35 a year you have too much. But in the next year you probably won't be able to get much more then 10,000 of available credit if that high.

If you finance a car it would be a great thing. Again don't want a huge loan but $3000-$10,000 car that is paid regularly will help build credit.

Those are about the only two things you can do to build and improve your credit in the next year.

Also subscribing to freecreditreport.com is a the best thing you can do. Take the trial period then tell them you want to cancel then they will offer it to you for half price. $10 a month and you can make sure you credit stays perfect.

For the future a few things to do are.
Keep accounts and in good standing obviously.

The length of an account is one of the biggest factors to make great credit over good.

Keep balances 50% or lower and make payments on time. Now one thing many people don't understand about on time, that means not more then 29 days late. If you make every payment in your life 29 days late you will have perfect credit. It isn't reported as a late payment unless it is 30 days or more late. Not saying get in the habit of paying after the due date but know that if you forget a payment or something comes up you have a buffer zone when it come to keeping your credit report in tact.

02b0wti3

iTrader: (1)

I signed up for credit karma and linking my best buy credit card and my small student loan I have ($2000). It seems like a really go site and very helpful. It said I have a score of 697 right now. Hopefully that will be good enough to get a motorcycle financed. I feel like that or a car is the best thing I can do for myself in a year. Thanks again for all the help guys!

gamble686

iTrader: (3)

697 is good not great. So you are well on your way to having it where you want it. You can for sure get a motorcycle financed, but you will most likely have to do so at a relatively high rate around 8-11% at best due to what is called a thin file. Credit score is only a part of getting approved. The other parts include proof of income and credit history. Now it doesn't take much to get out of thin file territory. It simply means that even with a good score you don't have much history for them to go off of. Generally 3 different forms of credit lasting at least 1 year each will get you out of thin file status.

RacinRust

Although credit reports are the best way for lenders to rate your creditworthiness, there are other ways to build a record of trust. Bank accounts are a great way for a young adult to prove a level of financial responsibility before applying for that first loan.
Checking and savings account information isn't included on a credit report, but lenders will request it for most loan and credit card applications. Lenders like to know that you have a few years of experience handling your own money and making regular withdrawals and deposits. They also like knowing that you have a steady income.
Several major U.S. banks offer free checking accounts with no annual fees or minimum deposits. Remember, though, that negative bank account activity will appear on your credit report. So if you keep a low balance and end up bouncing a check, future lenders will hear about it.
Intrest and low income to debt is the number one killer for your finical future. You will have to get in the mode to paying yourself first. Get 6 to 12 months living expenses saved. Get an emergency fund saved. $2000.00 (not part of your reserve living expenses). Seen the cost of appliances lately. Cash buys more than credit any day.
That is a good start. If you can't pay yourself you can't pay your debts.
A good rule of thumb in purchasing on credit is go to the table with a minimum of 20% down. That is where most people miss the boat. You can buy down that "thin file" with more skin in the game.
I personally have not and will never pay anything near the 8-11% interest. That is just flat absurd.
Your buying that banker a lot more vehicle or house than you are getting.
Don't want to start a spittin match with credit vs cash. I can tell that a lot of folks here will not agree with this advice but I,ll be blunt. 40K aint very much money in todays quagmire economy.
If you start this right you will not be kiting your bank account and robbing Peter to pay Paul.
Besides remember one thing what ever you buy with wheels on it is going to break and the mods you will want to do all add up.
Remember your FICO scores are not the only things the creditors review on your credit score. They also have a FICO expansion score, which culls financial data from "alternative data sources" like rent payments and utility checks to determine creditworthiness. There's even a company called Payment Reporting Builds Credit. (PRBC) Self reporting credit.
That one surprised me a couple of years ago through Ally and Suntrust.
Congratulations on the engagement and good luck.

02b0wti3

iTrader: (1)

Thanks again for all the help and advice. I'm not too worried about my income I just want to get my credit off to a good start. I have 3 months to save up a down payment for whatever I want to finance. I start working full time in May. I just want to be sure I go about it the right way. Money wise, my fiance and myself will be fine as I am finishing school to be a diesel mechanic and she is finishing nursing school. We will have plenty of green but she currently has zero credit and I know I probably have the best chance at getting us approved for a house. A little more detail, we are waiting until October 2015 to get married so we can both work full time for a year to save. We both graduate this upcoming December... Once again, thanks to all of you for your insight and I don't think I have had any bad advice from any of you. Honestly didn't think that question would get much talk on this forum but you guys have been a HUGE help.