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How do you build credit if you have none

how do you build credit if you have none


Best Answer: Get a Secured Credit Card

This is just "one" of the many ways to establish a Good Solid Credit History. This will also help you to practice managing your credit in the future.

Here are some info from Bank of America website about how it works:

How Secured Card works

* Helps you establish a credit history that will benefit you now and in the future.

* You deposit anywhere from $300 up to $10,000 into a Bank of America security deposit account. Your credit line will directly reflect the amount of your deposit.

* Then make purchases with your card up to the amount you have in your security deposit account.

* Pay at least the minimum payment before the due date each month. Paying off your credit card balance in full each month instead of carrying a balance may help. Your security deposit does not cover minimum payments.

* Based on your

credit and payment history with your secured card, you may qualify for an unsecured card at a later date.

After a year using a secured credit card and following the rules listed above, you already established a good credit history. You can then apply for an unsecured ones like American Express, Mastercard, Visa, Discover, and so on.

When you get your unsecured credit card, use only 30% of your limit. For example your credit card has a $1,000 credit limit, make a purchase not greater than $300 and always pay it on time.

Do not open too many credit cards and do not close as well for these will decrease your credit score.

Every year, you get free credit history report from website. Check your history, check for credit fraud and if ever you found one, file a despute to the 3 nationwide consumer reporting company such as Experian, Equifax and TransUnion.


Goofy-footer · 8 years ago

Category: Credit

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