How to Establish Credit
:: How to Establish a New Credit History from Scratch

In the credit world, NO Credit is BAD Credit... If you have NO credit history, if you never had credit on your name before, then you are in the same boat as a person with bad credit. Find out how to establish credit,build credit from no credit, credit cards you can use to establish credit and loans to establish good credit...

Here's how to establish good credit with or without a secured credit.

To establish good credit, one of the most important thing to have is a stable bank accounts. Yes... You should have a savings 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 your money.

The best way to establish credit : Take out a loan!

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? Let me tell you my friend, even if you have no immediate need for that money, try to borrow it anyway.

Another way to establish credit : Apply for a credit card from a local department store

Credit reporting is important... Before you apply for credit with a creditor, you need to make sure that the creditor will report your credit history information to at least one of the credit bureaus.

If your creditor does not report credit history information to the credit bureaus, don't bother applying for a loan or credit card with them because that loan or credit card will not help you re-establish your credit history.

IMPORTANT: Make sure you ask them "Do you report to the credit bureau?"

Another way to establish credit : 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.

It is it a credit card you applied for, buy something on it or pay a bill, then make your monthly payments on time each and every month.

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