|Written by kim wilson|
How to establish or reestablish your credit rating.Whether we are just beginning to enter the world of credit or are starting to rebuild credit, you need to find ways to establish yourself as a responsible consumer. When doing this you should start small. Being able to stay within your credit bounds is an important key to establishing yourself a responsible consumer as well. Over-extending yourself while trying to get established will only increase the likelihood of you starting right back at square one.
Because the process to reestablish your credit can be frustrating , knowing what to do can help lessen the frustartion. When looking to establish or re-establish your creditÂ there are many different options available. Here are a few of them.
Pay your current bills on time: The most important part you play in maintaining a good credit rating is paying your monthly bills on time. By paying your current bills on time, you will help to ensure that your current accounts remain as positive marks on your credit report.Regardless of any negative accounts you may have, your present, 6 to 12 month habitsÂ are the most crucial.
Open a checking and saevings account: Although the checking and savings account information are not reported to the credit agency directly, the accounts do provide creditors with the information on the way you manage Â you finances. A checking account will provide you with certified evidence that you pay your bills. A savings account will allow you to show creditors the amount of money you have available in the case of an emergency.
Apply for a secured credit card: To help establish a positive credit rating you should apply for a secured credit card. A secured credit card works much like in the same way an unsecured credit card does. You have a line of credit that you are responsible for and you make payments each month on the balance you have acquired. Secured credit cards carry interest rates as well as finance charges.
Apply for department store credit cards: Most department stores will qualify for a certain credit limit based on several criteria, usually job, income, and credit history.a credit limit of $100 is all you need to begin strengthening your credit. As long as you act responsibly and make your payments on time, your credit rating will become stronger.
By taking these few actions your credit will begin to improve. You will be able to show that you are now responsible and that you are worthy of a chance to prove yourself to be a person that is credit worthy.