Building up more credit?

I am 21 y/o and currently have $1,000 in debt. I work Full-time and make around $600 every 2 weeks (living on my own, so exclude living expiences). I previously went to a car lot to purchase a new car (new car to me is in the 03-04 model year), upon talking with the dealer and finance manager I was told I don't have enough history behind me, but they would be willing to put me on a 36 month payment plan with a monthly payment plan roughly around $650 a month for a 2006 Chevy Colbalt, obviously I am not stupid enough so I told them no.

My question is how can I get that history behind me so I can purchase a car within the range of $4500 - $5000? And if I were to pay off that debt would it help any? Obviously my credit is my own, and it was my fault for getting it where it was, which to say the least is not as a bad as a few people I know who owe a whole lot more. At any rate I have every intention to pay off what I owe and I want to have a great credit history for the future. Thanks.

Here is credit in a nutshell.

when you apply for credit a bank looks at your total credit to available credit percentage. If you have a total credit limit of 1000.00 and you used 1000.00 your percetage is 0. if you get a second credit card with another 1000.00 limit this will effectively make your credit percentage 50% without making a single payment. this is good for small loans and credit card applications. it makes you look good on paper.

on the flip side when you attempt to make a large purchase, haveing large amounts of unused credit makes banks nervous. it looks good on your credit score but it means you have the potential to put yourself in a large financial bind fast and make you more likely to default on a loan or mortgage. it's a double edged sword, but in the end if you can get a couple of credit cards and then lock all but 1 up in a safe somewhere it will boost your credit fast, as long as you use the card sparingly and pay it off fast.that will boost your credit history in a couple of months. that's about as fast as it gets with credit.

Pay off your debt quickly!

Pay your debt down to under 30% of your available credit. Then, do some credit repair and you should be able to get a great rate.

Take a friend or relative (with good credit) to the bank and apply for a small signature loan ($1000-$2000). Have the friend/relative co-sign for the loan. Then, pay this back very quickly ... in about 3 months. This will build your credit history very fast.

Hi, I am a financial advisor and have helped several people establish credit. The best thing you can do is get a secured card. Most banks offer them. This means that you will put an amount of money into a savings account and get a credit line that is up to twice that amount. Typically, after a year of good payments, that account goes unsecured and you get your deposit back.

Another way to build credit is to have a friend/family member with excellent credit add you to their credit card as an authorized user. You do not have to have a copy of the card, or use it, but this usually adds the history from that card to your report.

If neither of these are an option, talk to your bank about doing a secured loan.

Just remember that utilities and most gym memberships and phone plans do not report to your credit unless you get sent to collections so they will not help you build your score.

For more info on how to develop credit history, check out the forums at http://www.fuhao.biz/

good luck!