How to establish credit?
Q: Right out of high school I opened a retail computer store front and computer repair store. I've been looking into my credit report a lot lately. My car loan is on there, but that's about it. I seem to get declined on a few things being that I have no credit. My car loan just recently showed up on my credit report and being self-employed, I'm sure that doesn't help, either...
Can you make recommendations to me on not how to increase my score, but just establish credit ? I feel like I can build a good score, once I learn to even start building credit. Does it just take time?
A: It will take some time but hopefully not much. First thing is to go to the bank where you have your account(s) and ask for a PERSONAL credit card from this bank if they issue any. Citi, Chase, Bank of America and others may give you their own credit card with small credit limit (about $500) if you keep the money with them. If bank gives you such card, it will show up on your credit report in 1 - 2 months and be an important step to establish credit. You can also get business credit card if you are a business owner and have a business account. That credit card, however are not going to influence personal credit report and credit score but can come handy for all expenses.
Where you borrowed money you bought the car for? Check with them if they give you a credit card. As long as you have paid your car on time, they well may.
Apply for retail store credit card - Macy, Carson, Jesse Penny, Radio Shack, Shell, Mobil, Harlem and Wicks furniture stores, etc. Try not to apply for more than 2 credit accounts every 2 weeks, because of the hard inquiries that will be posted on your credit report and bring the whatever score you have down.
You can also get someone cosign for you but make sure you and a cosigner understand what cosigning entails.
You can also get a secured credit card.
Sun Jan 15, 2006 02:01PM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips |
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