How to build a credit history
How To Build Your Credit History
By: StudentCreditCards.com
Everyone starts out with a weak credit history. This is because your credit report is based on your past credit activities. Students legally aren’t allowed to acquire credit until they are 18-years-old. Therefore, most high school graduates prepare for college with no credit history to speak of. While building a solid credit history takes several years of dedication and responsibility, it can be done and you can start right now.
To start building a credit history, begin by opening a savings account or checking account with a debit card attached to it. While owning a bank account doesn’t create a credit file, it does indicate you have money and know how to manage it.
Next, apply for a department store credit card or major student credit card. In some cases, a department store card is easier to obtain than a major credit card. However, many of today’s major card companies offer special programs for students with little or no credit. Once you have a card in hand, use it responsibly. Always pay your bills on time, don’t max out your card, and whenever possible pay off the balance monthly.
If, for whatever reason, you don’t qualify for a credit card on your own, there are still options. Some credit card companies will allow you to open a card if you provide a deposit. In other words, if you want a card with a $500 limit, they will request you to make a $500 deposit to ensure you pay your bill accordingly.
You can also ask someone you know with good credit to co-sign on a card. In this case, the co-signer serves as the deposit. Therefore, if you don’t pay your credit card debt, the co-signer agrees to cover the debt for you.
Once you have a credit card in hand, use it to build a stronger credit history. This means always paying your bill on time and watching how much you spend every time you use your card.
To learn more about credit and to compare credit cards and apply online visit www.studentcreditcards.com
Student credit cards.com @ March 11, 2008
[...] Financial talk wrote an interesting post today onHere’s a quick excerptHow to build a credit history credit Comments (0) How To Build Your Credit History By: StudentCreditCards.com Everyone starts out with a weak credit history. This is because your credit report is based on your past credit activities. Students legally aren’t allowed to acquire credit until they are 18-years-old. Therefore, most high school graduates prepare for college with no credit history to speak of. While building a solid credit history takes several years of dedication and responsibili [...]