Credit Building  

Credit building is establishing or in some cases, re establishing your credit history.   

See where your credit stands!       (OR)     

For most people just starting out, entering into the big world, you will find it hard to obtain lines of credit.  Reason; " you have no credit history" A very familiar rejection. You are probably thinking it is a "catch twenty two".   In order to start establishing your credit, you will need to first start from the bottom, and work your way up to build a positive credit history. 

A good start to building credit is with a basic credit building tool; 
A CREDIT CARD!   Now sometimes you can get a good offer such as a student credit card (college students only ) , or even get added onto a positive credit card account with a family member as a co- borrower ,   Or you can obtain a sub prime credit card through  the major banks, such as but not limited to : 
Orchard ,  Capital One ,  HBC , Providian,  First Premier, Columbus Bank , and many more.  Now some of them have very large fees, so read the fine print.
Once you obtain your credit card, you must be sure to pay your bill on time every month.  Do not forget , even if  you did not relieve bill in the mail.  You might be in the right, but ultimately it is your responsibility to make sure that you pay it on time.  Most credit card companies have automated phone service, as well as web access for the consumer to track balance information, payment history, due dates, etc.  You also want to keep your balance low.  Most starter credit cards credit line is $300 to $500.  It is ideal to keep balance at a 30%, but is fine to keep it below 50%.  So if you have a $300 credit card, you never want to have more than $140 charged up on it.  (you need to remember that interest is added to your balance as well)  Never go over the limit on your card either.   In time with good payment history, and responsible usage of your credit line, the bank that has issued you the card will start to increase your credit limit, because you proved yourself to be less of a risk.

A good healthy mix of credit is helpful.  Be careful, because if you have too much , you might appear to be over extended, and look a little risky for any potential  lender.  If you have a credit card, car loan, and some kind of installment loan, that would be considered a good credit mix.  Or if you have a car loan , and two credit cards.  Or two credit cards, and installment loan.  The important factor is that you pay all loans on time, and keep credit card balances low.

Tip:  Go to your local bank. Open a savings account and put  $1000 into it.  Take a loan for $1000, using your savings as collateral.  (Yes you are borrowing your own money) .  Now open a checking amount with the $1000 that you just borrowed, and set your payments to be auto debited from your account.  Be sure to put some extra money in the checking account to cover the interest that is applied to your loan. When you are done  you will still end up with the very $1000 you started with , but you will have paid interest on it ( around $100 )   Be sure to talk to your banker, let them know that you are trying to build credit, and that you need them to report this loan to the credit reporting agencies.  Do not get impatient, and try to pay it off real quick.  Let this play out for a year.  Credit Scores are based on payment history over time!   You can also look into Secured Credit Card Programs.  Most banks do this as well, even the huge ones.  Or do both, if you have the money to spare.  You are still saving money after all,  just paying to do so.

Car Loans are good.  They are large, and very involved.  Usually it takes time to pay a car off.   Be sure that you do not take on a car payment that you can barely afford.  When figuring a car payment, you must also consider insurance premiums as well.  The more the car costs, the more it is to insure it.  Be sure you obtain a vehicle that is within or below your means.  The big flashy car would be nice, but if you have weak credit you will be paying way more for it now, than you would with strong credit.  Once you show a good payment history on your car loan, your credit score will soar.  A combination of the different credit lines, all in good standing for at least a year to two years will definitely make buying a home much easier.  Then you can get that flashy convertible, or sports utility.   You earned it, and most of all, you will be shelling out less out of pocket for all of it in the long run.  Thousands less in interest.  Banks don't loan money for free.  They have to make their profit.  A low risk consumer gets a low interest rate, because the bank knows that they will profit without fear of default on your part.