The Fastest & Easiest Way to Build Up Credit
By Sawyertech
Overview
Your credit score affects nearly every public aspect of your life. Want to buy a car? You need good credit. Applying for a new job? Many employers do a credit check. Renting an apartment or buying a house? Expect your landlord or loan officer to know your credit score.
The tricky part is, in many ways you need to have good credit to get good credit, since your credit rating is basically an assessment of how well you handle the credit you've been granted. So here are some tips on building up a good credit rating.
Step 1
The absolute fastest way to establish a good credit rating is to benefit from someone else's through a joint account or co-signed loan. If your co-signer has great credit, you can use that to qualify for a credit card or loan you couldn't qualify for by yourself. But be careful. If you fall behind on your payments, you will be damaging your co-signer's credit rating. Likewise, if your co-signer decides to have fun with your joint credit card and stick you with the bill, you don't have much recourse.
Step 2
If you don't like that option, look into getting a secured credit card. You make a deposit with the lender and receive a card with a credit limit equal to that deposit. You can use it like any other credit card. Stay away from lenders with exorbitant application fees and high interest rates. Shop around for a good deal. Also, check to be sure the lender makes regular reports to all three credit bureaus. If your performance isn't being reported, it's not building your credit.
Step 3
Apply for a department store or gas station credit card. These won't build your credit as fast as a major credit card, but they will help you start documenting a financial history.
Step 4
Once you have a credit card, keep your expenditures to less than a third of your credit limit, and pay off the balances promptly. Your credit score is calculated based on how regularly you make payments and how much of your credit you habitually use, so keep the first high and the second low.
The Fastest & Easiest Way to Build Up Credit by empiremoneymaker.com