How Do You Build Credit-Tips for Starting A Positive Credit History

Almost everyone needs credit. If you are renting ancard, so if you find one available with low interest
apartment, applying for a mortgage, applying for arates and a low or no annual fee, you may want to
car loan, or even applying for a job, you will needapply. Student credit cards are mainly designed for
some type of credit history, as credit decisions arepeople with no prior credit, and they accept a large
often based on your prior use of credit. If you are apercentage of applicants. However, don't get more
young adult or are still in college, you have a uniquethan one card, as its too easy to start running up
opportunity to start building a solid credit history thatbalances, and it also looks better for your credit if
can serve you for many years to come. By carefullyyou don't open a number of accounts in a short
building credit and avoiding credit mistakes, you canperiod of time.
insure a strong credit history.If you are unable to get an unsecured credit card,
Although you may not have credit yet, you shouldyou still have some options to establish credit with a
try to get a copy of your credit report for the creditcredit card. If you have a savings account, your bank
bureaus, so you can check if there is any inaccuratemay let you apply for a secured credit card tied to
information. Additionally, you will want to make sureyour savings account. Over time, once you make
that you haven't been a victim of identity theft, withregular on time payments, you should be able to
someone using your name and trashing your credit.qualify for a non-secured card. You should also make
The three bureaus are: Equifax, Experian and Transsure your payments are reported to the credit
Union, and they can be contacted online, as well asbureaus, otherwise you won't be building your credit
by phone and mail.history.
One of the first steps to building credit is to open aAnother option is to get a co-signer. If someone has
checking and a savings account in your name. Yougood credit, that will extend it to you, by putting
may already have an account, and it is somethingtheir name as being jointly responsible for your limit
many lenders will look at, as it show stability. If youon your card. This will help your credit history if you
only have a checking account, you may also want topay off the loan in a responsible way. If you do have
open a savings account as well, which can be used asa co-signer, you have a serious responsibility to make
collateral for a secured loan, if necessary.sure your payments are timely, or you will hurt their
You should also have as many bills as you can listedcredit as well as your own.
in your name, such as your telephone and cellular bill.With some foresight, it can be relatively easy to
Make sure you pay all of your bills on time, as this isstart building credit. Once you get a credit card, its
a major factor in your credit score. If you can, try toimportant to keep the balance low, and to make
establish the accounts in your name only.regular, on time payments. The card should be used
The next step would be to get a credit card. If youas a tool for credit building, not as a additional
are a student, you may be bombarded by creditspending money. Over time, you credit will start to
offers on campus. Its a good idea to get one creditlook better and better.