Suffering From A Lack Of Credit?

by bill barber (back later this month)

Suffering From A Lack Of Credit?

Don’t take it personal! You’re standing in a line of thousands of people who have not established excellent credit yet. But, help is on the way. The first task is to firmly plant in your mind the positive things that credit can do. If you’re plotting on getting a person loan, buying a car, purchasing a home, working in a bank or other financial institution or perhaps finally getting the furniture you’ve been thinking about for a long time, establishing a line of credit is the answer. All of the above are the things that we all need from time to time. In truth, these pursuits are what makes the financial world spin on its axis.

The negative things that a lack credit can do are many. You can be denied the same access to credit cards, loans and other credit avenues simply because your credit score is too low from not having enough or any at all.

Simple Ways To Start Building Credit

A excellent place to start would be with credit cards that don’t pull credit or check systems reports. Many of these bill themselves as guaranteed approval. When applying for a guaranteed approval credit card (http://www.newhorizon.org/Info/guaranteedcredit.htm), you want to make sure that it reports to the credit bureaus. Essentially many of these are debit cards with either the Visa or MasterCard Logo on them. The main difference between these cards, and the one your bank gave you when you opened your checking or savings account is that these report to a credit bureau. As always, remember to take your time and always read the fine print. This is the only way you can make sure you are finding the best deal for yourself.

Another option might be to check if the lending institution of your choice has a secured credit card (http://www.newhorizon.org/Info/securedcc.htm) being offered. With a secured credit card, you must give the bank a security deposit which they place into a savings account for you. You can then borrow against that security deposit. The interest rate may be higher on this sort of card, but by making timely payments, these cards will usually convert to an unsecured credit card within 12 months. At that point the bank makes your initial security deposit available to you again to withdraw or keep in the account.

Merchandise credit cards (http://www.newhorizon.org/Info/catalog-credit-cards.htm) and department store credit cards are also an brilliant source for establishing a line of credit. Make sure it’s a store where you can buy a lot of your shopping needs. This cuts down on your need to apply for too many cards at once. Applying for multiple cards at once can be seen as a negative on your credit report.

Filling Out The Application

Next, fill out any application for a loan or credit card completely. If something doesn’t apply place N/A on that line. Include your checking and savings accounts and any accounts you pay for on a monthly basis. Furniture rentals or other monthly payment that don’t appear on your credit report may sway a lender in your direction if they are not approving or denying based solely on credit scores.

If a car is in your sights, it’s excellent to do research on the dealership or car lot that where you want to make the buy. All dealers will provide a source of financing. Some even may carry their own loan and payment plans. Be on the lookout though and read the fine print on the contract. You don’t want to get stuck with an interest rate that is through the roof. This venture is where a excellent cosigner may come into play.

Use these tips to help jumpstart your credit history and get approved for the credit that you deserve!

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