How to Establish Credit

Credit isn't established overnight. Prepare now for financial emergencies by securing a good credit rating.

Difficulty: Moderate

Instructions

Things You'll Need:

• Charge Cards
• Checking Accounts
• Loans
• Savings Accounts

1. Get checking and savings accounts in your own name.

2. Apply for a charge card in your own name from a retail store or financial institution. Make at least a minimum payment monthly to establish a record of managing debt.

3. Apply for a loan in your name to buy jewelry, furniture or another item that will be paid off in installments for at least a year. Make all payments on time.

4. Secure a small loan from a credit union or bank (an auto loan, for instance), and pay installments on time.

5. Check your credit rating by calling your creditors or ordering a copy of your credit report.

6. If you experience trouble getting a loan, ask a friend or family member to co-sign it.

Tips & Warnings

• Although not a credit indicator, a checking or savings account shows how you manage money. Avoid bouncing checks and add to your savings monthly.
• A spouse's death or a divorce could leave you without credit. Establish credit in your own name.
• Secure a job for several months before applying for credit.

Who Can Help Sponsored

• How strong is your score?  Did you know checking your own credit won’t affect your score? Click here to see yours in two easy steps from Experian.

[creditmaster]

on 10/1/2009 http://www.bestcreditcard.googlepages.com

Credit card offer from Bank of America
0% Balance transfer for 15 months
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or

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Priority code: UAAJVY
Citizen:Yes
IBO reference number: 5549488

[CreditWorld]

on 8/24/2008 I used Trade Capital Company to get a standard deposit loan, then I refinanced it with my bank. Trade Capital put up the collateral for me, so I got a line of credit (cash secured). With the credit I got from Trade Capital, and the new line of credit, I have about 5 more payments before the bank says they will release the collateral. Takes time, but it works.

[jameswalker]

on 6/30/2008 The best way I found to restore credit is to borrow funds just to hold them on deposit, make some interest payments, then give back the deposit to pay off the loan. If you agree to just hold the funds on deposit, httpa;//creditloader.com will let you borrow the funds with NO CREDIT CHECK. After three months I was on a few bureaus, and I didn't have to buy something I couldn't sell to do it

[gotalkmoney]

on 3/6/2008 If you're currently going to college, a student credit card is a great way to establish credit.

on 12/27/2007 If your parents can't or won't co-sign for credit establishing processes, get a secure credit card. Basically, a secure credit card is as follows: You pay a credit company that offers this service an amount of money (like $500 dollars). You then have a credit card with a $500 limit. It's an easy and relatively 'harm free' way to become a credit "adult."