CREDIT BUILDING TIPS
Establishing a good credit history has never been as important as it is today.
It's not just that you'll need good credit to get decent rates when you're ready to buy a home or a car.Your credit history can determine whether you get a good job, a decent apartment a deal on your cell phone or reasonable rates on your insurance.One mirror misstep, a late payment or spending over your credit limit can haunt you for years.If you're just starting out and have a once-in-lifetime opportunity to build a credit history the right way.Here's what to do and what to avoid.
age are previous credit troubles have prevented you from obtaining or re-establishing your credit by applying for a gasoline card or a credit card with a department store.
You may also consider applying for a secured credit card. You will be required to deposit a specified amount, usually $300 to $500 dollars into account in their bank, and you will be issue a major credit card in the amount of the deposit.Shop around to find a bank that reports the cars as unsecured credit card on your credit line.
Take out a small loan from your credit union bank .Deposit the money into your savings account and pay the loan back monthly.
If you currently have credit ask your creditors to increase your credit limit.This will improve your credit utilization radio thereby improving your credit score. Just remember not to use the additional credit.
If you do not have a checking's or savings account apply for both.Having these accounts establishes you as part of the financial community and allows you to manage your money.
If a spouse or relatives has good credit ask to be a authorized user on one or more accounts. This should never be done for short-term fix to obtain a loan but should be used as a long-term strategy to rebuild your credit.A word caution; be very careful of whom you choose because if they make a late payment or default on a loan it can appear on your credit as well.
If you are faced with a financial crisis due to job loss or unexpected medical bills, consider asking a family member for a short-term loan to pay down your debt.
Your credit file also includes personal data such as your social security number, employment information, date of birth and names and addresses you have listed when you applied for credit. Although this information is not used to calculate credit scored it may be reviewed by banks and mortgage officers and used to make leading decision. Review your credit fie for the following.
-Request that the credit bureau delete any social security numbers that are reporting in error.
-Make sure all your employment history is up to date and includes all positions you held in the past five years
-Make any necessary corrections, additions or deletions in regard to your current and previous addresses.
-Your credit scores changes regularly as your creditors provide payment and account data update your credit file. Your credit scores are always a reflection of your credit file at the moment in time the is credit is pulled