How to establish good credit from scratch
Quite a bit has been written about how to rebuild your credit if it has taken a dive, but what if you do not have any credit at all? Everyone has to start somewhere, right? You are not born with a personal credit history. So what can you do to build the foundation for good credit? While this is not a substitute for professional advice from a financial expert, we have a few suggestions for how to establish good credit from scratch that you may find useful.
Five steps to building good credit
Practice good financial habits. This is the foundation for everything that comes afterwards. Pay your bills on time, save money, don’t spend beyond your means, and you will be good to go. Refrain from opening a bunch of accounts all at once. Opening a bunch of accounts at the same time can actually hurt your credit score, so take it slow with your applications. Open a secured credit card. This is a great way to start out, because a secured credit card actually requires you to make a deposit beforehand, and that is your line of credit for the card. Don’t hit your maximum credit. This includes your secured credit card. Having a high balance of money owed will hurt your credit report. Pay all of your bills on time. This means every last bill, no matter how small. If bills are paid on time every time, creditors and institutions will see this and be more willing to work with you.
Establish your credit with Car & Credit LLC
If you are looking for a new (to you) car but don’t have a credit history to back you up, we can help! We specialize in working with people who have poor credit or no credit. You can pay as low as $99 down and $75 per week, and we report your payments to the credit bureaus each month, which will help get you rolling. Contact Car & Credit LLC to find out how you can get behind the wheel of a car you’ll love today!