Building a Good Credit Rating
Most people coming out of college have either no credit or bad credit. If you are neither of these then consider yourself very lucky. If you have come out with no credit, there are ways to fix this and establish a good credit rating [http://financetalkonline.com/index.php?option=com_content&task=view&id=12&Itemid=27] as well.
The first step is to get yourself a bank account. Anywhere you apply for credit is going to need your banking information and you need to have a place to hold and move you money to and from.
Apply for a credit card. Check around and try to find a company that will approve your application since getting denied for a credit card will actually hurt your credit. Try to get a credit card through a store. The interest is often high on these cards, but if you rarely use it and pay it off then you are building your credit.
You must use the card you have gotten. Make sure that the items you buy on the card is something you can afford, and be sure to pay it off each month. After a few months of this you will be able to apply for a more common card like visa.
Keep a budget. Don't ever go over your budget. By sticking to the budget you have created for yourself you can avoid creating bad credit for yourself. Think of your card as only money that you already have, not money you will make.
By paying back the money you spend on the card quickly you can keep the interest from suffocating you. Always try to pay more than the minimum.
If you should be denied a credit card, ask for an explanation. With the explanation you may begin to correct the problem.
It won't take much time to establish good credit. Always be responsible with your credit score. Remember your parents are not there to back you anymore.
The first step is to get yourself a bank account. Anywhere you apply for credit is going to need your banking information and you need to have a place to hold and move you money to and from.
Apply for a credit card. Check around and try to find a company that will approve your application since getting denied for a credit card will actually hurt your credit. Try to get a credit card through a store. The interest is often high on these cards, but if you rarely use it and pay it off then you are building your credit.
You must use the card you have gotten. Make sure that the items you buy on the card is something you can afford, and be sure to pay it off each month. After a few months of this you will be able to apply for a more common card like visa.
Keep a budget. Don't ever go over your budget. By sticking to the budget you have created for yourself you can avoid creating bad credit for yourself. Think of your card as only money that you already have, not money you will make.
By paying back the money you spend on the card quickly you can keep the interest from suffocating you. Always try to pay more than the minimum.
If you should be denied a credit card, ask for an explanation. With the explanation you may begin to correct the problem.
It won't take much time to establish good credit. Always be responsible with your credit score. Remember your parents are not there to back you anymore.
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