Credit History
Getting a loan or credit card for the first time can be difficult.
With no established credit history, finance companies and banks are
hesitant to extend credit. One of the easiest credit cards to qualify
for as your first, is one form a local department store. Ask the store
to report your account to the credit bureau. They will then start tracking
your payment record and will create a history for you. Make sure you
use the credit card responsibly. Pay all of your payments on time. Don't
charge more than you can afford to pay. A positive credit history is
an asset that will help you when applying for loans, getting an apartment,
buying a car, applying for jobs and many other things you will do in
everyday life.
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Apply for a secured credit card. You will be required to open and maintain
a bank account or other account at a bank or financial institution as
security for your line of credit. Your credit line will be based on
a percentage of your account balance, usually from 50 to 100 percent.
Application and processing fees are common for secured credit cards
and can add to the cost of using them. Secured credit cards also usually
carry higher interest rates than traditional nonsecured cards.
Consider asking some with a positive, established credit history to
co-sign for your account.This is often a relative.The co-signer agrees
to take responsibility for any debt you don't repay. Be sure to pay
off balances quickly and on time in order to establish your own credit
history.
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