More Articles

• Dallas Apartments
• Dallas Attractions
• Dallas Economy
• Dallas Neighborhoods
• Dallas Real Estate
• Dallas Schools
• Dallas Annual Events
• A Moving Checklist
• Renter's Insurance
• Moving Tips
• How to Build Credit

How to Build Credit

If you are moving out on your own for the first time you may find it is difficult to get your new life started without a credit history. In some cases, no credit history can be just as bad as having poor credit. Lenders can find it difficult to make loans to you if they cannot gauge by your credit history whether you are a good or bad credit risk.

While it may seem unimportant now, if you want to buy a car or a home at some point in the future you will need to have an established credit record. In fact, credit records are becoming more and more important. Some apartment complexes today even run credit reports before they will lease apartments. This means that you will need to begin taking steps to build a good credit history as quickly as possible.

Your first step in building a credit history is to make sure that you really do not have anything already in existence on your credit report. Order a copy of your credit report from all three credit reporting agencies. This is to make sure that something has not been fraudulently reported on your credit report.

Next, talk with your bank about obtaining a secured credit card. A secured credit card is different from a regular credit card because you make a deposit into the account to fund the credit card. Your credit limit is restricted to the amount of your deposit. This technique will allow you to begin slowly building a good credit history.

You may also consider using gas station cards in order to begin building credit. This is a relatively safe way to build your credit because most gas station cards are required to be paid off on a monthly basis. You can avoid the temptation of taking on large amounts of debt while still building your credit in a positive way.

If you are planning to take out a loan, consider using a co-signer. You may find that you have a better chance obtaining a loan on your first purchases if someone else signs on the loan with you. Do make sure you make your payments on time because you can cause huge problems for your co-signer if you fail to make your payments on time.

If you decide to use department store credit and charge cards, make sure that you use them wisely. These cards can be a good way to save money, as many usually offer a discount on your initial purchase. Keep your balance low and try to pay off the cards as quickly as possible in order to build your credit positively.

Remember that credit can be a two sided sword. When you have good credit you have numerous opportunities available to you but if you do not handle your credit in a responsible fashion, you can also end up with problems that will stay with you for years. Using your credit in a smart and responsible manner will serve you well for the rest of your life.