Establish Good Credit
How To Establish a Good Credit History
Suppose you haven't financed a car loan, a computer, or some other major
purchase. How do you begin to establish credit? First, consider applying
for a credit card issued by a local store and use it responsibly. Ask they
report to a credit bureau. If they do – and if you pay your bills on time
– you’ll establish a good credit history.
Second, consider a secured credit card. It requires that you open
and maintain a bank account or other asset account at a financial institution
as security for your line of credit. Your credit line will be a percentage of
your deposit, typically from 50 to 100 percent. Application and processing fees
are not uncommon for secured credit cards. In addition, secured credit cards
usually carry higher interest rates than traditional nonsecured cards.
Third, consider asking someone with an established credit history
-- perhaps a relative -- to co-sign the account if you don't qualify for credit
on your own. The co-signer promises to pay your debts if you don't. You'll want
to repay any debt promptly so you can build a credit history and apply for
credit in the future on your own.
A positive credit history is an asset, not only when you apply for a
credit card, but also when you apply for a job or insurance, or when you want
to finance a car or a home.
Best Credit Card Deals, Compare Credit Cards Online
