Start Building Your Credit History, Today!
1. One easy way to show a potential lender that you're a good credit risk is by opening individual checking or savings accounts in your name. While a bank account will not affect your credit file, the account activity will demonstrate your ability to handle money responsibly. Be aware that writing bad checks and overdrawing your bank account are negative indicators to lenders and do damage to your credibility as a good credit risk.
2. Apply for a credit card and use it to establish credit. Pay it off every month to show that you can responsibly handle money. If you must carry a balance, it is imperative that you pay your credit card bills on time. Department store and gasoline credit cards are generally easier to obtain than major credit cards. Another good way to establish a credit history is to apply for a small loan or line of credit from your local bank. Repay the loan promptly and on time to build a positive credit history and earn a good credit rating. To get a loan without a co-signer, you must be at least 18 years old and have a steady source of income. Increase your chances of getting the loan you are applying for by coming up with a large down payment.
4. If you do not qualify for credit on the basis of your own credit file, consider asking someone with an established credit history (like a parent) to co-sign your application. If you fail to repay, the co-signer promises to do so on your behalf. If you're looking for a credit card to start building credit, consider a secured credit card. These credit cards require you to maintain a funded account / security deposit to get approved. Or, apply for an unsecured card and avoid the security deposit altogether (if possible).
Qualify for a New Credit Card
If you are at least 18 years old and have a regular source of income or savings, you are on your way to qualifying for a credit card. But you will still have to demonstrate that you are a good customer. The proof is in your credit history, which lists the amount of credit you have received and how faithfully you have paid it back. If you have financed a car loan or other purchase, you probably have a record at a credit reporting bureau.
This credit history shows how responsible you have been in paying your bills and helps the credit card issuer decide how much credit to extend. If you are a full-time student, make sure to include that information on your credit application. Creditors often assign full-time students lower initial credit lines to start their credit files. If you have an excellent credit history, you may qualify for cards with rates as low as 0% introductory APR and a variety of reward cards.
Before you submit a credit application, get a copy of your credit history to make sure it is correct. Contact a credit bureau listed in the Yellow Pages under "credit rating and reporting." To order a copy of your credit report, contact Equifax, TransUnion, or Experian.
Choosing the Right Credit Card
Credit should be your servant and not your master! Smart consumers comparison shop for credit cards, especially with today's wide array of choices. Before you accept the 'pre-approved', 'limited time' offers you receive in the mail, consider all of your options and how you plan to use your new credit card.
If you plan to pay the balance off each month, a grace period is vital to avoid paying interest on your purchases. If you plan to pay off the balance over time, look for low APR credit card offers with no annual fee. How high of a credit limit do you need? Will your new credit card be accepted in all the places you plan to use it?
Equally important is to understand what method the issuer uses to calculate your balance and compute your finance charges. This will determine how much interest you'll pay each month!
Related Tags: credit card, repair, credit, history, report, build
For more information on choosing, see our article How to Choose a Credit Card. To see a complete list of secured, unsecured, and prepaid credit cards, please visit WOW! Credit Cards - Credit Card Applications.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- What's In Your Credit Report?
IdentificationYour name, address, social security number, birthdate and previous and current employm - Pros And Cons Of Low Purchase Rate Credit Cards
Low interest credit cards are outstanding until the time period runs out. Most of these offers promo - Bad Credit Loan Scams
There are several bad credit loan scams out there. These are usually aimed at those that don't have - Successful Credit Repair Methods
If you bad credit, you are not alone. Fact of the matter is there are tens of thousands in the count - Auto Loans Bad Credit: Bad Credit Is Not An Obstacle Now
Now a days, people want their own Cars. Though there are Public Transport Systems, they do not watch - Credit Card Services For Your Business
Co Branded Credit cards can be very beneficial for you if you have a business. These cards are onlin - Will The Actual Natural Motion Endure Large Food? -- Horizon Milk
The natural food business may be going through major work day in energy in the past 10 years. Becaus - Prices Of Dlp Lamp Alternative Parts - Dlp Bulbs
Since you will have to purchase a DLP> lamp each and every few years, it might be useful to know the - Dlp Bulbs -- Facts About Dlp Lamp Replacement
With regards to technical breakthroughs there aren't many things that are more popular than tvs and - Ways Which Anybody May Restore Their Very Own Credit Rating Easily - Credit Repair For Dummies
If you listen to a lot of the actual ads which are available regarding credit>, more than likely you
Most viewed articles in this category:
- Credit - Repair
To make the life more comfortable people purchase lots of things from clothing to cars and homes tha - Helpful Tips For Using Low Interest Rate Credit Cards
People with good credit ratings often receive offers for low interest rate credit cards. A credit ca - Benefits to Businesses Accepting Credit Cards
Many business owners report a sharp increase in profit when they begin accepting credit cards as a m - How To Remove A Bankruptcy From Your Credit Report
Credit report repair can be a long, tedious process and one of the hardest items to get removed is a - Putting Low Interest Rate Credit Cards To Work
If you have a solid credit rating, then you may receive offers for low interest rate credit cards. Y - Buying A Car With A Personal Contract Purchase Loan
If you are looking to buy a car but are unsure whether or not a new car is worthwhile, then you shou - Credit Repair - Tips And Tricks That Work
When you apply for credit, your lender will request a credit report from a credit reporting agency. - Bad Credit Debt Consolidation
No doubt there are numerous bad credit personal loans but hunting for a secured loan for bad credit - Before You Buy
Check out the market in the area you want to buy. Find out what price houses are going for and - Top 10 Keys To Creating A Good Credit Score
We know it can be unfair but credit is used for everything these days. Utility companies are even us