|
BUILDING YOUR CREDIT
What kind of credit you have can influence many
things in your life, i.e. the car you drive, the house and
area you live in, etc.. Your credit history can even influence
whether or not you are hired for a job. Your ability to
handle your debt and finances can either 'make or brake' many aspects of your personal life. Therefore, knowing
how to develop and sustain a positive credit history is
extremely important.
Building Credit
Developing your credit is easier than you think. Here
are some ideas to get you going:
-- Put as many utilities in your name as you can. Doing this will help
establish a steady history of regular payments with your
personal information.
-- Apply for department store credit card. The criteria for getting
approved for this type of credit card is very easy.
--
Apply for a small personal loan.
Making timely payments for an
unsecured loan is an excellent way to build credit.
--
Apply for a credit card. There are many types of
credit cards that are designed for people with no credit
looking to build credit. We suggest the
Orchard MasterCard or the
Tribute Gold. Consumers used to be able to build
credit by having their names added as authorized user to
someone else's credit card account. However, FICO
recently
eliminated authorized users from the credit scoring
formula.
-- Once you follow some or all of the above
suggestions, make sure that all of your creditors are
reporting your information to all three of the major
credit reporting companies.
Sustain a Positive Credit Rating
Once you build some credit, you must maintain a good
credit rating. Any negative marks on your credit report
will be listed for seven years and can adversely affect
your ability of obtaining any type of new credit and/or
loans. Below are some simple tips that will help you keep
your positive credit.
-- Always pay all of your bills on time, every
month! This is the most important rule to follow! Doing
so will not only build your credit, it will allow you get
more credit from future lenders.
-- If you ever can not make a payment on time,
contact your creditors. See if they can extend the due
date for that month, or if they can offer you an
alternative payment method.
--
Get a copy of your credit report at least once a year.
You want to make sure all of your reported info is
up-to-date and precise. This will allow you to catch and
dispute any erroneous information early.
Get a copy of your credit report now!
Credit Fact:
Buying a used car will not only help you build your
credit, you will
save money by buying a used vehicle!
Read information about
student credit cards and how they can help build
credit.
|
