How to Start Building Credit

Start Building Credit

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Credit is a funny thing. You can't get a credit card or loan if you don't have credit. You can't get a cell phone if you don't have credit. So if you don't have credit how do get credit so that you can obtain all those things that build credit. I will tell you.

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Instructions

Difficulty: Moderate

Things You’ll Need:

Job
Money
Bank Account

Step1

Have someone(who has credit) cosign with you on a small loan, a credit card, or a cell phone.

Step2

If a qualified cosigner is not available talk to your bank and they will offer you a credit card that has a $500 dollar line of credit. The catch is that you have to give them $500, which they will hold for a year to make sure that you make your credit card payments. If you don't make your payments they take the payments from your $500 and it ruins your credit. So instead of no credit it would give you bad credit. Make sure this is something you can handle before you try it.

Step3

Different Stores or Companies like Sears, Home Depot, or Lowe's may offer you lines of credit on purchases without a credit history.

Step4

The longer you make steady monthly payments and the more things that you make steady monthly payments on the better it makes your credit look. For instance when buying a house they may want to see three bills that you've paid every month for a year or more.

Step5

Every times someone pulls your credit it lowers your credit score. So if you are shopping around for better rates on a loan go to your bank and ask them what your credit score is. Then go around to different loan agencies and give them your credit score rather than having each place pull and lower your credit. That way your credit only gets lowered once instead of every time you ask someone what kind of rates they can offer you.

Tips & Warnings

Don't use credit to buy things that you can't afford at the moment. Use credit to buy things you can already afford. That way you don't get into trouble. In my opinion a house is the only thing that you should go into debt for knowing that you can't pay for it right away.
I am simple man who has learned about getting credit the hard way. I claim no credentials. Use this advise at your own risk. I pray that it will help you out.