Tips To Establish Credit
- Every time
you apply for credit, it appears on your credit report as an inquiry and
you get a "check mark." Too many of these marks in a short period
of time may result in you being declined for credit due to excessive inquires.
- It is highly
recommended that you pay off your credit card balances in full every month
by not accumulating more charges than you can pay (unless necessary).
credit reports contain inaccuracies, usually caused by innocent errors
but occasionally by fraud (such as identity theft, in which a thief
uses someone else's name to open credit accounts). The
Fair Credit Reporting Act ensures your right to dispute such inaccuracies
in your credit report.
- The most
obvious thing you can do to build a solid credit history is to pay your
bills on time.
a credit card, even a pre-paid or secured credit card or a department store
card (generally easier to qualify), use it monthly and "wisely", and
make sure to make your payments on time. You may need or want a co-signer
to qualify for your first standard credit card.