Below are three ideas for establishing credit. If you are successful in establishing an account, and use it responsibly for a year or two, you will begin to build a good credit history.
Ask local companies for credit. Try your bank, credit union or a local department store. But make sure that the company sends the information on your credit account to one or more credit reporting bureaus so that it will help you establish a credit history.
Find a co-signer. Ask a relative or friend with good credit to co-sign your credit application. A co-signer promises to pay if you don't. If you don't make payments on time, the co-signer will be responsible for the loan. By failing to pay, you could damage your relative's or friend's credit.
Get a secured credit card. A secured credit card is a bank credit card backed by money you deposit in a bank account. If you don't pay off your credit card bill, the money in your account may be used to cover that debt.
Shop around to find a good deal. You can compare current information about secured cards at www.bankrate.com on the Internet. Before you apply, make sure the card issuer will send the information on your credit account to a credit reporting bureau. Look for a secured card with:
A low annual fee.
No up-front application, processing or membership fees.
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Below are three ideas for establishing credit. If you are successful in establishing an account, and use it responsibly for a year or two, you will begin to build a good credit history.
Ask local companies for credit. Try your bank, credit union or a local department store. But make sure that the company sends the information on your credit account to one or more credit reporting bureaus so that it will help you establish a credit history.
Find a co-signer. Ask a relative or friend with good credit to co-sign your credit application. A co-signer promises to pay if you don't. If you don't make payments on time, the co-signer will be responsible for the loan. By failing to pay, you could damage your relative's or friend's credit.
Get a secured credit card. A secured credit card is a bank credit card backed by money you deposit in a bank account. If you don't pay off your credit card bill, the money in your account may be used to cover that debt.
Shop around to find a good deal. You can compare current information about secured cards at www.bankrate.com on the Internet. Before you apply, make sure the card issuer will send the information on your credit account to a credit reporting bureau. Look for a secured card with: