April 26, 2007

Building Good Credit

Filed under: Credit Cards,Credit Repair,Credit Reports,Credit Scores,FICO,Mortgage,Real Estate

I have no credit history. What is the best way for me to establish credit or build a credit score ?

Ross

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Hi Ross,

Secured credit cards and/or an Authorized User are great ways to start building a credit history.  To generate a credit score under Classic FICO (the version mortgage companies use), you will need one tradeline with a six-month history – so, it is true that you will have no score, but that doesn’t mean that you can’t obtain a mortgage loan.  If you have been paying rent and utlities for the past twelve months or more then alternative tradelines may also qualify you for an FHA mortgage loan to purchase your own home.

Thanks for the questions and hope this helps.

Paul

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