Credit Building 101

[Kevin Sproul]

I did a search and the existing Credit Score building threads are from before the last few batches of rule changes so I thought I would start a new one. So all those who understand credit scores:

Starting from scratch, what is the fastest way to build up to a score which qualifies for prime rates?
(By from scratch I mean a kid turning 18 with no accounts/debts or cards yet or an immigrant from a place with no credit scores or credit reporting agency).

How high dose your score need to be to hit that "Prime" threshold?

PS: Yes, I understand that there are ways to invest without having good credit or using the credit you have but a good score makes it easier and/or cheaper to do many things.

[Kyle Thacker]

I turn 21 next month and my credit score is 770.

Since I was 18 I have had a credit care with a $250 limit, which I only used occasionally and paid the balance in full every month.

At 20 I canceled that card and got a card with a $1,000 limit. I still very rarely use it and if I do it is paid in full at the end of the month. I have no other debts.

I use the credit card for the sole purpose of building credit. I am sure there are better ways I could have built my credit, but this has worked out for me.