Bad Credit Loans - You Do Have Options
If you are one of the millions of people walking around today
with a bad credit rating, you may well be wondering how you'll
ever be able to get a loan again in the future. Well wonder no
longer. If you need a loan and have bad credit, the...
Credit Card Debt Problems
What to Do If You Hit the Debt Mire
When debt goes bad, it becomes more than just a financial problem. It can take over your life. If you have a debt problem the earlier it is handled and dealt with, the less likely it'll turn into a crisis, and...
Five Credit Card Billing Problems and How to Fix Them
It goes without saying that your first and best defense against paying fraudulent or unfair charges on your credit card is knowing what your bill says! When you receive your credit card statement each month, sit down with it and check each item to...
How Credit Card Points are Earned
Credit card companies offer varying benefits and promotions to
entice their customers to use their credit cards not only in
their everyday purchases but also for major buying decisions.
One of the promotions that credit card companies have...
No Credit Car Loans - Car Loan Approval With No Credit History
Getting an approval for a car loan when you have no credit
history can often times be almost as difficult as getting a car
loan approved when you have bad credit. There are things that
can be done, however, which will improve your chances of...
Establishing Credit, the Great Task
"How do I establish credit, when I don't have a credit history"?
This is probably the most commonly asked question by most
consumers looking to open a credit account. Not having credit
can be just as difficult as having bad credit unless you know
how to go about proving yourself to a potential creditor.
The crazy catch twenty-two: How can you get credit if nobody is
willing to extend you credit because you don't have any credit
history? A good place to start is by obtaining a letter of
credit from a company that you have been dealing with already
that does not report to the credit reporting agencies.
An example would be your electric company. It is possible to
contact your electric company and request a letter of credit.
They are likely to require that you have had an account with
them for at least a year as with most companies that you are
asking for a letter of credit. Your cable company may be another
option for a letter of recommendation for credit. If you have
had an open account for at least a year and have made on time
monthly full payments, without payment arrangements, these two
companies are good candidates to provide you with a letter of
recommendation for credit.
To establish credit either with or without a letter of
recommendation for credit, you could also start with your
banking institution. All banks offer credit card and loan
accounts. If you have banked with the institution for at least a
year (sometimes 6 months) they may strongly consider extending
you a line of credit. In the beginning of any credit account,
your interest rate may be high, but don't despair, after your
first positive review in about 6 months, the interest rate may
fall dramatically as well as your payments if you have been
making minimum payments.
Just to get you started. Your new account may be very low. After
about 6 months of on time payments, your lender may review your
account for a larger credit line. The smartest technique is to
start with baby steps. Start with just a small account, pay the
accounts regularly, get used to the monthly obligation, and make
on time monthly payments before jumping into any other credit
account(s). You are very likely going to find creditors coming
out of the wood work and
hunting you down to offer you a line of
credit, consider their offers with caution. Actually, the best
recommendation is to give your self at least 6 months to a year
before taking on a new account. Jumping in too fast can easily
wipe out all of the hard work you have done so far to establish
some credit.
Once you jump on the credit bandwagon, it is vital that you
keep track of your own credit rating. You will find many great
offers online for programs that can inform you, on a regular
basis, of your credit standings. You could also request your
free annual credit report and verify your status regularly.
Once your credit becomes active, keeping track of your credit
report is crucial for many reasons:
1. It could prevent the use of a fraudulent credit account by an
unknown user. 2. It could prevent the unfortunate event of
somebody stealing your identity and using your credit. 3. It
could help find a lost payment and assist you with keeping track
of how your creditor is reporting your payment activity. 4. It
is just good credit etiquette to know your own credit rating. 5.
Knowing your own credit rating and status gives you bartering
power when dealing with a new potential creditor.
Once you've established some credit, take caution with accepting
credit offers from other creditors, look into the interest rate
the lenders are offering, consider the monthly obligation in
addition to your other financial responsibilities such as rent,
utility bills, car insurance, groceries, laundry expenses, gas,
day care, etc., and feel free to decline credit offers.
In the beginning of your adventure with new credit accounts, it
can be very exciting to have several creditors offering
advances, it can be an uplifting and powerful event, however,
pursue with caution in order to maintain a healthy credit rating
and score. Keep your credit history in mind and respect the
great task that you have accomplished by establishing credit
with caution.
About the author:
Tony Robinson is a business owner with vast experience in all
facets of Credit and Credit Repair - for further tips and
techniques visit http://www.officialdebtfree.com