In this day an age almost everything requires you to have credit. Bad credit is somehow is better than no credit so it seems. Many people who are starting off have a hard time trying to get by without credit or good credit. So I decided to write this in an attempt to help those who haven’t figured it out yet. How to build or rebuild your credit.
Start off by setting up a checking and savings account. This is a good way to show some stability. Lenders want to see that you are not a risk or at least a high risk. Keep your account in good standing. Keep track of your spending by balancing your checkbook. It is not advisable that you have many accounts all over the place find a bank that you want to bank with and stick with them. You can talk to your bank after having the account for a while about getting a credit card regardless of it is prepaid or not you need to start somewhere.
When you go to apply for a credit line or credit card make sure to shop around like you would anything else. Try to find one that has a low interest rate that you feel is affordable to you. When you get a credit line make sure that you use it responsibly. Use the card but make sure that you use the card. Do not max the card out to the limit. When you use the card make sure that you pay the card balance when it is due! Paying on time shows that you are responsible and somewhat trustworthy. Don’t just pay the minimum balance try to pay a little more if you can not afford to pay the balance off in full.
Get utilities put in your name and make sure to also pay them on time. You want to be able to show that you have some stability by staying put. Keep a study source of employment and try to stay in the same residence as well. It really doesn’t look good that you can not stay put anywhere for a while.Check your credit report if you don not check it you will not know what is on there and you will not be able to keep accurate updated knowledge of what is going on. If you see things on there like accounts that you did not open or authorize dispute them identity theft is another big reason that many people have their credit ruined.
So here is a quick run down of the basics once again. To build or rebuild your credit.
1-Pay off your old debt. Have a study source of employment.
2- Find a place that you enjoy living at and stay there for a while.
3-Keep an active checking and savings account that is in good standing,
4-Get a Credit card prepaid or otherwise.
5-Pay your bills and pay them on time.