|
How to Build Your Credit
Whether you need to begin to build a credit history, improve your credit scores, or get rid of a bad credit report, you will need to concentrate on similar tasks. Taking the following steps will point you in the right direction:
First, find out everything you can about your current credit reports. The three main credit bureaus have to give you a free report once a year, showing exactly what they have in their files about you. They will show every credit card, personal loan, or student loan you have taken out in the last seven years. There will be total amounts borrowed or the highest balance carried for each card, as well as whether you paid on time and paid at least a minimum payment. There may be amounts owed to utility or phone companies, if these have been turned over to a collection agency. There may also be items you know nothing about. The bureaus may have mixed your information with someone else’s—or you may be a victim of identity theft.
Apply for a Quick Cash Advance to get the Cash you need >>
Second, open a checking account and a savings account. Life is a little safer and easier if you don’t have to keep track of cash. You will also begin to build a stable history, if you don’t have one already. Just be sure to keep track of check amounts and debit transactions. You do not want a record of bounced checks or the expense of overdraft fees. The savings account also helps to begin building a source of cash in case of an emergency. You may be able to have direct deposit of your paycheck, with a part of that check going straight into your savings account.
Third, pay every bill on time, with a check or direct deposit. That way, there is an electronic record at your bank of reliability. Be aware of “grace period” times and of the time it takes to mail a payment. You may decide that electronic bill pay is the most reliable way for payments to arrive on time.
Apply for a Quick Cash Advance to get the Cash you need >>
Fourth, buy something small on credit and pay it back on time. Many times, a retail store will offer a store credit card even if you don’t have a credit history. This card does not have to have a very high limit. The point is to agree to buy something on credit and then pay it back.
Fifth, shop for a bank credit card, and use it wisely. Again, it doesn’t matter what the limit is. Try to get one that has a low or no annual fee and a low rate of interest. The point is to get a card, buy something, and pay the amount off. If you are not accepted for a regular credit card, you may be able to get a secured card or prepaid card. If you pay off any purchases promptly, you should be eligible for a regular credit card. Try to charge only an amount each month that you can pay off in full when it is due. That way, you will not be paying interest on a balance.
Follow these rules and you will soon have a good credit history. If these tasks seem overwhelming, look for a reliable credit counselor to help you sort through your particular situation.
Apply for a Quick Cash Advance to get the Cash you need >>
* Cash-Advance-USA.org provides information and research on cash advances/payday loans. We are not a payday lender or broker, nor are we necessarily affiliated with the companies profiled on this site. Not all products and services are available in each state.
|
