Building a Credit History

<h1>Building a Credit History</h1>Author: <a title="Dewey Kearney" href="http://www.articlesbase.com/authors/dewey-kearney/35170.htm">Dewey Kearney</a> Have you ever applied for a loan and been turned down? I have and I remember my feelings at the time. I was embarrassed, angry, hurt and just plain mad. I had been on my own for several years, always paid my bills on time and felt that somehow I had been severely wronged. Those were the days before credit cards were as easy to get and it was harder to establish credit than now.

It is important to establish a credit history before you actually need that loan, and it is easier than you might think. Consistently paying your rent, utilities and phone bill on time just won’t do it; you could still be turned down for a loan.

One of the simplest ways to establish a credit history is through credit cards. Do you remember the first credit card you got, I do and boy was I happy. I felt like somehow I had arrived or hit the jackpot. It didn’t matter that the limit was only $250 and the interest rate was 24%. A credit card is much simpler to get than a loan but if you use it wisely and don’t go crazy and purchase everything you see you will be pleasantly surprised with the results.

In fact if you want this to have a POSITIVE effect on your credit score keep your charging to 25 – 30% of your limit. DO NOT MAX your card out as this will have the opposite effect. This is your opportunity to prove to the world that you can act responsibly.

Here are a few simple tips to get you started building a good credit history.

·	Everyone gets credit card offers in the mail. DON’T apply for every one that you get. Applying for many credit cards in too short a time can damage your credit score.

·	A good place to start is with your credit union or bank where you have a checking or savings account. If you have a savings account where you regularly put money in they will be more comfortable giving you a card.

·	Most people with no credit history will not be able to get a credit card with a big credit limit and yours will be no exception. You will have a small credit limit – don’t max it out just because you can.

·	Be sure to make your payments on time. Late payments will lower your credit score and will stay on your record for years. Also if you only use it to make small purchases it will be easier to pay it off every month.

What if you are having a hard time even being accepted for a credit card? Don’t panic; there are still ways to start building your good credit history. Here are a few ideas:

·	Ask your parents about adding your name as an authorized user on their card. Check to be sure that their credit is good though for obvious reasons. If your parents won’t or their credit history isn’t so hot see if you have a friend who will help you out. One other thing, the person who is adding your name will have to ask their lender to be sure it is credited to your history. Some lenders only report if the authorized user is married to the primary holder.

·	Apply for a credit card on our site. Our link is below in the resource box. You may be pleasantly surprised at how easy it is to qualify.

·	Get an in-store credit card. Many of the major chains have a card that can only be used in that store. This type of card reports to the credit bureaus so this will help you build your credit. The most important thing of all this is: don’t get too many credit cards at once or it can damage your credit history.

Getting a credit card is one of the best ways to establish your credit history. Get your GOOD credit history in place early and you will have nothing to worry about when you need that loan for a car or home.

About the Author: <a target="_blank" href="http://www.1-800BadCredit.com">http://www.1-800BadCredit.com</a> provides up-to-date information for people 
with bad credit. Providing auto loans, mortgages and refinance options, 
credit cards, credit counseling, personal loans, identity theft 
protection and advice & tips on saving, budgeting and getting out of 
debt. Founded by Dewey & Leslie Kearney who understand bad credit 
because they've been there too! 
 <a target="_blank" href="http://www.1-800BadCredit.com">http://www.1-800BadCredit.com</a> Site dedicated to helping you find credit solutionsArticle Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/credit-articles/building-a-credit-history-315585.html" title="Building a Credit History">Building a Credit History</a>

Have you ever applied for a loan and been turned down? I have and I remember my feelings at the time. I was embarrassed, angry, hurt and just plain mad. I had been on my own for several years, always paid my bills on time and felt that somehow I had been severely wronged. Those were the days before credit cards were as easy to get and it was harder to establish credit than now.

It is important to establish a credit history before you actually need that loan, and it is easier than you might think. Consistently paying your rent, utilities and phone bill on time just won’t do it; you could still be turned down for a loan.

One of the simplest ways to establish a credit history is through credit cards. Do you remember the first credit card you got, I do and boy was I happy. I felt like somehow I had arrived or hit the jackpot. It didn’t matter that the limit was only $250 and the interest rate was 24%. A credit card is much simpler to get than a loan but if you use it wisely and don’t go crazy and purchase everything you see you will be pleasantly surprised with the results.

In fact if you want this to have a POSITIVE effect on your credit score keep your charging to 25 – 30% of your limit. DO NOT MAX your card out as this will have the opposite effect. This is your opportunity to prove to the world that you can act responsibly.

Here are a few simple tips to get you started building a good credit history.

· Everyone gets credit card offers in the mail. DON’T apply for every one that you get. Applying for many credit cards in too short a time can damage your credit score.
· A good place to start is with your credit union or bank where you have a checking or savings account. If you have a savings account where you regularly put money in they will be more comfortable giving you a card.
· Most people with no credit history will not be able to get a credit card with a big credit limit and yours will be no exception. You will have a small credit limit – don’t max it out just because you can.
· Be sure to make your payments on time. Late payments will lower your credit score and will stay on your record for years. Also if you only use it to make small purchases it will be easier to pay it off every month.

What if you are having a hard time even being accepted for a credit card? Don’t panic; there are still ways to start building your good credit history. Here are a few ideas:

· Ask your parents about adding your name as an authorized user on their card. Check to be sure that their credit is good though for obvious reasons. If your parents won’t or their credit history isn’t so hot see if you have a friend who will help you out. One other thing, the person who is adding your name will have to ask their lender to be sure it is credited to your history. Some lenders only report if the authorized user is married to the primary holder.
· Apply for a credit card on our site. Our link is below in the resource box. You may be pleasantly surprised at how easy it is to qualify.
· Get an in-store credit card. Many of the major chains have a card that can only be used in that store. This type of card reports to the credit bureaus so this will help you build your credit. The most important thing of all this is: don’t get too many credit cards at once or it can damage your credit history.

Getting a credit card is one of the best ways to establish your credit history. Get your GOOD credit history in place early and you will have nothing to worry about when you need that loan for a car or home.

http://www.1-800BadCredit.com provides up-to-date information for people
with bad credit. Providing auto loans, mortgages and refinance options,
credit cards, credit counseling, personal loans, identity theft
protection and advice & tips on saving, budgeting and getting out of
debt. Founded by Dewey & Leslie Kearney who understand bad credit
because they've been there too!
http://www.1-800BadCredit.com Site dedicated to helping you find credit solutions

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/credit-articles/building-a-credit-history-315585.html

Article Tags: Bad Credit, Credit Card, Credit Cards, Credit, Visa Card, Good Credit, Gas Credit Card, Build Credit, Store Credit, Get Credit

Related Articles
Related Q&A

Latest Credit Articles
More from Dewey Kearney

Online Money Making

By: Sanjay Srivastava | 15/11/2009
www.earnmoneyonline.net.in Affiliate marketing is a marketing strategy in which a person who has become an ‘affiliate’ with a business is rewarded for every customer or order fetched by him. Internet has made this type of business very easy to start.

Payday Cash Advance - Pros Vs Cons of Getting a Payday Cash Advance

By: Matt Couch | 15/11/2009
When financial difficulties come up your way, and that you do not have a way out. Do not worry Payday cash advance loans are there to help you out. You can also solve your credit card issue that is annoying you that month with its late fee charges.

Cash Before Payday - How to Get Cash Before Payday With an Advance

By: Matt Couch | 15/11/2009
A Cash advance is designed to meet your financial needs. When you need some extra cash for a month, or if you meet up with some special functions in your family or any unexpected bill has put you in a bad financial position that you got to handle. The Payday loans come in handy in such a situation. You have to pay a fee for the amount you have borrowed as an advance.

Payday Cash Advance Loans - How to Receive Up to $1,400 in Less Than 48 Hrs

By: Matt Couch | 15/11/2009
Payday loans are short term loans that are offered by many lending agencies. Usually, the time period given to repay back the loan is two weeks. The amount that is granted is various from a person to a person.

Online Cash Advance - Where to Find the Cheapest Online Cash Advance?

By: Matt Couch | 15/11/2009
Payday Cash Advance loans are one of the easiest ones to get through online. The online cash advance process is just a two step process that is easy to fill out.

Obama and Payday Loans - How Obama is Making Online Payday Loans Popular

By: Matt Couch | 15/11/2009
President Obama released this plan of bringing Payday loans into the Internet. He knew that many of the people of this generation look out for something that they could get much easier from a nearby store. In other words, you can say that they prefer to get everything and anything, for that matter, in an easier way.

Disney Credit Card - Find Out How To Drastically Cut The Cost Of Your Next Disney Vacation!

By: Kylie Johnson | 15/11/2009
Why go to Disney World? Simple really - if you have kids then Disney World can be the perfect vacation for all the family and one that will never be forgotten either! Sure, you will have lots of fun and hopefully everyones wishes will be fully met and more, but at what financial cost to you? It is therefore a very good idea to learn how to save money not only for this trip of a lifetime but during the vacation itself. With this in mind, have you ever thought about a Disney package deal?

Free Giveaway! Credit Strategies is now giving away a Free Credit Repair

By: Mick Bernard | 15/11/2009
Date: December 1, 2009 – Scottsdale Arizona- Credit Strategies (www.onlinecreditstrategie.com) has announced a drawing for a Free Credit Repair. The giveaway is to improve a credit score for one lucky individual. Credit Strategies understands that people have made sacrifices in these difficult times and we want to show you the benefits of our services. So If you are curious if Credit Repair is right for you sign-up and win! Or contact us and talk to our experienced staff to learn more.

Why Should I Quit Smoking

By: Dewey Kearney | 12/06/2009 | Wellness
So many people smoke and wish they could quit that we recently posted a new website TheStopSmokingSource.com dedicated to helping these folks break the chain. I personally watched my brother smoke himself to an early, painful death and am currently watching my sister do the same thing. It’s painful to watch but also to watch my 91 year old mother grieve as she watches her children slowly die.

Are You Still Smoking? Want To Quit Smoking?

By: Dewey Kearney | 12/06/2009 | Wellness
I don’t believe there is any person reading this who would argue the dangers of smoking or that smoking is addictive. We have tried several ways as a people to discourage cigarette smoking short from a complete smoking ban; from banning it in public buildings to postings a warning on the packs themselves yet still an estimated 45 million Americans are still addicted. Are you one of them? Would you like to stop smoking? My brother was one of these who died from smoking and soon my sister will als

English Mistakes That Can Kill Your Chances Of Getting A Job

By: Dewey Kearney | 17/02/2009 | Interviews
Whether you're preparing for a job interview, writing that resume, preparing to give a speech before a crowd, or writing up a business presentation, it is critically important for you to make sure everything is correct. When it comes to your career, you can't afford to make any mistakes.

What if I’m not Ready to Quit Smoking?

By: Dewey Kearney | 28/10/2008 | Quit Smoking
I watched my brother and sister struggle to quit smoking. I was raised in a non-smoking home and though I had a few relatives who smoked by and large most of my family didn't. However - my younger brother became a two pack a day smoker and smoked till the day he died. Incidentally he died at age 61 - way pre-mature - with every health related problem you can mention. My sister, the youngest of us, is sti

What if I’m not Ready to Quit Smoking?

By: Dewey Kearney | 09/09/2008 | Quit Smoking
I watched my brother and sister struggle to quit smoking. I was raised in a non-smoking home and though I had a few relatives who smoked by and large most of my family didn't. However - my younger brother became a two pack a day smoker and smoked till the day he died.

Be Careful What you Throw Away

By: Dewey Kearney | 25/01/2008 | Credit
Everyone at one time or another has either joked about or heard a joke about “Dumpster Diving”. Usually it refers to someone scavenging for food or behind a store to see what they have thrown out. And everyone has heard of someone finding something of real value in the trash. Personally I’ve seen someone on the Antique Road Show showing off a painting they found this way, only to be told it’s worth some extraordinary amount of money. This article is not about that kind of buried treasure but another kind that most people have been guilty of throwing out; the most personal things that contain information about you that in the wrong hands can cause you an awful headache, otherwise known as Identity Theft. Identity theft is the fastest growing crime wave in the United States according to the FBI and the US Postal Service. The US Postal Service says on their site that identity theft from stealing mail from your mailbox is not a big problem but it does happen. So if you have something to mail that contains your SS number or a credit card bill that has your number on it, they recommend that you take it to the Post Office and put it in a secure box.

Building a Credit History

By: Dewey Kearney | 25/01/2008 | Credit
Have you ever applied for a loan and been turned down? I have and I remember my feelings at the time. I was embarrassed, angry, hurt and just plain mad. I had been on my own for several years, always paid my bills on time and felt that somehow I had been severely wronged. Those were the days before credit cards were as easy to get and it was harder to establish credit than now.

Are you Ready for the Next Wave of Identity Theft?

By: Dewey Kearney | 24/01/2008 | Personal Finance
As everyone knows unless you have been asleep like Rip Van Winkle identity theft has become the #1 crime wave in the U.S.A. according to the FBI and the US Postal Service. Now a new fear has raised its head because of the recent federal and the state laws that go into effect on January 1, 2008. For years anyone in the country illegally could (and still can) purchase any type of document on the street from some vendor. These fake documents can range from a Social Security card, drivers license, green card or practically anything else people are willing to pay for.