Home » Finance

How To Build Credit

Jun 2, 2008
Have you ever been denied for a loan because of limited or no credit history? This puts many people in a peculiar bind. It can be very frustrating to get denied for a loan, especially if you are trying to obtain the loan to build your credit in the first place. If you are in this situation, follow these steps to start building up your available credit.

- Stay current on the bills you already have. Delinquent bills and obligations of all kinds can show up on your credit report and this will make it difficult to get accepted for credit. Lenders want to see a healthy financial picture on your credit report across the board.

- Try to apply for a credit card or two. Remember to start small, maybe a department store or gas station card. If you get denied, don't keep applying for other cards hoping to get lucky. Too many inquiries on your credit report will make you seem desperate to the lenders.

- Your bank or credit union can be a great place to get your first credit card. Make some regular deposits to your account and be sure not to bounce checks or overdraw the account. Next apply for a secured credit card. The limit on this card will be secured by the money you have deposited in the bank. If you have no credit history the bank will be more likely to approve you for this type of card because if you default the bank has the option of using the funds in your bank account to satisfy the debt.

- Once you have a credit card, secured or unsecured, use it sparingly and pay it off every month. This is imperative to build a solid payment history which is essential to get approved for larger loans in the future such as a mortgage.

- As you build more and more available credit, be aware of common credit traps offering you quick cash or enticing you to spend beyond your means. Credit card companies do not make billions of dollars per year off of people who pay their bills in full every month. One of the most tempting traps that millions of debtors fall into is taking out cash advances on your credit card. These can be offered in the form of checks that you can write to whomever you choose, or in some cases using your credit card like a debit card in an ATM. In almost every case the rate you are paying for these cash advances will be much higher than for regular credit purchases.

Make sure to not get in over your head and keep your financial goals in mind. It makes sense to build credit to qualify for a good mortgage or for emergency purposes, but not for extra spending money. As long as you stay disciplined your credit score and available credit will improve. For more information about credit and debt, please visit www.selectdebtrelief.com
About the Author
Adam Jasa is the Founder of Select Debt Relief www.selectdebtrelief.com. Previously Adam worked with the Freedom Financial Network in their Financial Consulting Department. He is an expert in the different options available to consumers with unmanageable debt burdens. His company, Select Debt Relief is a member of Debt Resolution Partners which currently manages over $950 million of consumer debt.
Rating:
Please Rate:
(Average: Not rated)
Views: 169
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources