How to Establish Your Credit
June 8, 2009 | In: Finance
Establishing Credit
Not all loans are bad. Sometimes, in case of an emergency, applying for a loan can be your only solution. But credit isn’t established in an instant. You would have to build it over time. Here are steps on how to secure a good credit rating in case of financial emergenicies:
Avoid bouncing checks or keep your saving account from having a zero-balance. Although these are not credit indicators, this shows how well you manage your finances.
Establish individual accounts and credit in your own name even if you are married. A spouse’s death or divorce could leave you without credit.
Apply for a charge card in your own name from a financial institution or a retail store. Make at least a minimum payment every month to establish record of managing debit. This can also be done on installment payments for credit union or bank loans (for auto or insurance). Or when you buy jewelry, and furniture and appliances.
Always check your credit rating and your creditors. As for a copy of your credit report on a regular basis.
Just in case you have difficulty getting a loan, you can ask a friend or family member to co-sign it.
Make sure that you secure a job for several months (at least 6) before applying for credit.
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