Establishing Good Credit

No Credit – Big Problem

So you don’t have any credit to speak of, but you have big plans for the future. Maybe you’re a fresh college graduate or a young person eager to buy your first new car. If you have never had to use credit before, first of all “Great to Hear”! Of course, it’s best to pay cash for the things you need so that you don’t have to worry about credit card payments, loan payments, or interest rates.

But if you’re young, the chances of you needing credit in the future are very real. Someday you might want to buy a house. Perhaps you’ll want to buy a new car. Chances are pretty good that you won’t have the cash outright to buy these high ticket items which mean you’ll need credit. Plus, it’s always good to have a little credit since many utility companies will look at your credit to turn on your power bill, for example, without a deposit of some type.

One great way to start establishing credit is to apply for a store credit card (Macy’s, Target, etc.). Once you get the card, make a few small purchases and pay them off completely. Do this a few times over the course of a year and you’ll find yourself with some established credit with an excellent payment history. You can also apply for the Kredit Koncepts “No Credit Check” $1,500 Credit Line. This Credit Line builds credit each time you use it and make payments. Visit to learn more.

Be Responsible

DO NOT go overboard and buy more than what you can pay for, though. You can also apply for a secured credit card. These cards ask that you place a certain amount of money in your account for which you will receive a charge card. Then you can make purchases up to the amount of money that is in your account. Credit reporting agencies treat these cards just like regular credit cards and look to them as a responsible way for you to establish a good credit history.

You will have to have a checking account to establish credit. This lends to your credibility with lenders and shows that you are able to manage your money effectively. When applying for a credit card of any type, be sure to ask if they report to any of the credit reporting agencies. As we’ve said before, they are not required to do so, and if they don’t, having one of these cards or loans won’t do you a lick of good even if you do make your payments on time.

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