Building Your Credit
It’s Time For You To Make History—Your Credit History.
Building your own credit history is essential to making the most of your finances, obtaining a job and the dream of owning your own home. Whether it comes to obtaining a credit card, auto loan, a mortgage or sending your kids to college, establishing a positive credit history should be at the top of your to-do list.
Here are some helpful hints to help you get started in building your credit history:
- Consider obtaining a secured credit card. A secured credit card is different than an unsecured, traditional credit card in that you have to “secure” it. Buy putting down a cash deposit; the creditor issues a credit card. Creditors report your account to the agencies, thus building your credit history.
- Make sure to pay off any credit card balances on time, in full and avoid opening other accounts.
- Consider taking out a small, personal loan through your bank. By paying this loan on time and in full, you will establish you credit history.
- Get a steady job that gives you the income to pay your unsecured credit card or small, personal loan. A steady income allows you to pay these bills and build your credit history.
- Don’t use your credit card to take out cash advances. Also don’t use your credit card at businesses like a divorce attorney’s. Creditors may view certain transactions as signs of risk.
- Regularly monitor your credit report and make sure it’s accurate. There are free reports available through companies like AnnualCreditReport.com.