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Bad Credit, Credit Score, Credit Repair > Credit Repair Info > How to Establish Credit In the credit world, No Credit is Bad Credit, if you have NO credit history or if you never had credit on your name then you are in the same boat as a person with bad credit.
Here's how to establish good credit with or without a secured credit.
To establish good credit, one of the most impotant thing to have is a stable bank accounts.
You should have a saving and a checking account.
When you maintain a stable bank account you are demonstrating to your creditors that you have the ability to manage and save money.
The best way to establish credit
The best way to establish credit is to take out a small loan from a local bank or your credit union. You may think you don't need the money, why borrow it? Even if you have no immediate need for that money try to borrow it anyway.
Another way to establish credit is to apply for a credit card from a local department store.
Credit Reporting - It's Important
Before you apply for credit with a creditor, make sure the creditor reports credit history information to at least one of the credit bureaus.
If they do not report credit history information to the credit bureau, that loan or credit card will not help you re-establish your credit history.
make sure you ask them "Do you report to the credit bureau"?
Have discipline, don't spend the money you borrow
You can use the same money you borrowed to make payments on the loan. Make the loan payments on time and consider the interest expense an investment in establishing a good credit history.
More Tips on establishing credit on the message board.
Do you have a good tip? Post it below.
REPLY to this article | 4 Comments
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Reader Comments (4)
Patricia D. says:
Find out if there is a fee for cash advances. Cash Advances can be a killer. I bank with bank of America, I was given a credit card with a 6% interest. when I applied I had no clue there was a different fee for cash advances. By the time I found out how much it was, It was already too late. Larry is right read the fine prints! Someone should've tole me that before.
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Larry says:
When you apply for credit, read the agreements carefully, all these little fine prints, then can hunt you in the long run. Don't just sign the credit appliction without knowing what you're signing. AND... Make sure you notice the interest rate Make sure you notice any monthly fees that are being proposed to you.
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Jane W. says:
Always get credit in your own name whether you are single, married, separated, or divorced. It is allways a good idea to get credit in your own name; you are entitled to a credit file in your own name. If your spouse or former spouse has credit or has bad credit and most credit was in the spouse's name, then you my friend do not have a credit file. It would definitely be in your advantage, and your partner too, to have your own credit file. you never know when you may need it
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Cre says:
If you are applying for credit, to establish a credit history, if you know you have some items on your credit report that are negative and you have been denied credit because of them, remember to submit a "Statement of Circumstances" along with your application. This should help you a little.
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