|
It's been said a bunch already I'm sure, but the easiest way to build up credit is to apply for a credit card through your bank. It doesn't matter what APR you get approved for, or how much the credit limit is for.
Use your card here and there when purchasing normal everyday expenses like gas and food. Most banks these days have online banking, and you can set up recurring payments from your checking account to your credit card (same bank) on a monthly basis. At that point, you don't even have to worry about forgetting to make your payments on time because it will automatically be paid for you.
I have mine set up to make the monthly minimum payment as auto-recurring ($20.00), and I get on and pay $100-$200 on it whenever the balance starts to get above $300. I usually pay about $5 a month in interest or so, which is perfectly fine with me, although I've been told that paying it completely off every month raises my credit the same as carrying interest does, but whatever.
I've been doing this for about 1 1/2 years now. I had two unpaid utility bills from about 5 years ago, so my credit started off a little negative at first, and I have not built up any credit from any other source besides my credit card. When I went to Scion and bought my 10 Series, I got approved for the lowest interest rate available from TFS, which was 2.5% (on a 60 month loan). I put 10k down, and somehow got suckered into purchasing an extended warranty for $1,500 extra (stupid, I know)... and after tax, title, apr, and everything else, my total ended up being $23,000 remaining ($33,000 total).
It doesn't take long to start building up credit at all. I'm guessing that within 6 months, you can get the APR you were quoted on that auto loan cut in half.
|