Home > Credit Repair >
Good Credit > Establishing Good Credit
Establishing Good Credit |
|
Sometimes it can be very difficult to get a car loan or credit card when you have no credit in your name. Especially affected by lack of credit are often young people, college students, and women who previously obtained credit jointly with their husbands.Establishing good credit is almost always necessary in order to buy a new car or home, rent an apartment, obtaining a large loan, getting educational loans, and sometimes getting a job. Many employers now check applicants credit score before hiring them. They know that a good credit rating reflects a person's financial responsibility, which in turn reflects job responsibility. The first step to is to apply for a credit card at a local store. These are generally much easier to get than a major credit card and have low limits.
However, if these places do not report to the credit bureau, then this will not count toward building your credit. At the places that do report to the credit bureaus, make purchases using your credit card that you know you have the money to pay for. Charge the amount to the card and pay off the balance as soon as the bill comes. This way you are establishing good credit without carrying a balance and having to pay interest. Also helpful would be applying for a small loan. If you cannot get a card or loan in your own name, ask a family member if they will cosign for you. An easy step toward establishing good credit is to open a checking account. Keeping an accurate checking account and being careful not to overdraw your account can make it easier to obtain a loan. If you are young and have no credit, consider asking a parent or family member to put a utility in your name. Even if they are the one actually paying the bill, this will count toward building your credit history. Being selective of which credit cards you apply for can also be helpful in establishing good credit. Choose cards with low interest rates and that do not have a monthly fee. Applying for many cards all at once can look bad, and also getting turned down for cards can look bad to lenders. Apply only for the cards whose qualifications you think you meet. The most important factor in establishing good credit is to keep up with your payments and make sure they are sent on time, this will help to maintain your good credit. Always make at least the minimum monthly payment, and more if possible, to reduce the amount of interest you will be paying. To avoid fees and bad credit, do not exceed your credit limit. To protect yourself against fraud, never loan anyone your credit card and always check your monthly statement against your receipts. Being careful and responsible are the most important ways to being establishing good credit. Learning these good habits when you are young can be very helpful towards having a good financial future. |
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
|
|
|
|
| ------------------------ |
|---|
|
| ------------------------ |
|---|
Custom Search
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
Consumer Alerts | About | Bookmark Us | Contact | Espanol | Privacy Statement | Copyright | Terms & Conditions | Financial Widgets | SiteMap
Copyright © 2006 Credit Loan, LLC. 235 APOLLO BEACH BLVD, STE 218 Apollo Beach, Florida 33572 All rights reserved.
Disclaimer: The content provided on CreditLoan.com is for informational purposes only; do not make any financial decisions based on its content. Financial decisions are personal, based on an individual's situation. Consult with a financial professional before making any financial decisions. CreditLoan.com is not liable for your financial actions.
