If you have no credit scores due to being new to the credit
arena or you have just been a cash person all your life
there is hope for you. There is one sure way to get the
credit score calculated in about 4 to 5 months. In this
article I will talk about how to establish good credit
scores for a healthy credit report.
Secured Credit Cards
A lot of people don't know this but secured credit cards
are the quickest way to establish credit. The reason for
this is you give the bank money to secure credit that
reports to all 3 credit bureaus. Typically you need about
two cards to get the ball rolling. After 4 to 5 months of
reporting "bam" you have credit scores. Typically creditors
like to see 3 lines of credit reporting for a minimum of 12
months with good payment history. With this type of
activity on your credit report, reporting to Experian,
TransUnions and Equifax is one of the recipes for success.
You will not achieve credit scores if you can not get
someone to extend credit to you. That is the secret behind
applying for a secured credit card to start the road to
establishing this wonderful three digit life altering
number.
Buy a house
Once you have about 12 months of rental history, with
paying your utilities, and your secured credit cards
on-time you will be able to buy a house. Of course you need
to qualify for a loan with your current income. Getting a
house is not as hard as one might think. If you have a two
year work history and have 3 lines of credit like I
mentioned earlier you can buy a home. Typically the type of
loan you will qualify for is FHA. This is a great first
time buyers program. Buying a house will help you get a mix
of credit reporting on your credit report. This is around
10% of your overall score. When creditors extend credit to
you they like to see that you own a home as opposed to
renting.
Keep Credit Card Balances low.
Once you have got secured credit cards reporting on your
credit report make sure you keep the balances below 30% of
a your secure credit amount.
Example:
Secured Amount: $300.00
Balance at 30%: $90.00
This will keep your scores where they need to be once you
establish them. After about 6 to 12 months you can request
a limit increase. This is another sure way to increase your
credit scores.
Get a car loan.
Getting a car is actually easier than getting just about
any other credit. There are all types of lenders out there
willing to loan you money on a car loan. You might try
getting a loan for a car to establish credit as well. Most
car lenders report the note to all 3 credit bureaus. This
is another way to get your scores rolling as well. Make
sure it's not some small tote the note establishment that
does not report to the bureaus. Make sure the loan is
reported to all 3 credit bureaus.
Conclusion: If you follow this advice you will be well in
your way to establishing your credit scores. If you are
unsure if you have scores get a copy of your free credit
score report today.
----------------------------------------------------
About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.
No comments:
Post a Comment