You wish to establish good credit and have access to a line of credit. The elementary place to start is by getting your bills in order by making sure you have paid them on time and every time as needed. If you’ve got an outstanding bill in collections, pay them off and have the collection paid. Continue to do this working your way up the ladder, blue eyes opening every stage to make sure no bill labeled “collection” is outstanding. Finally, you find your goal, borrow money to pay off all other credit cards, and build up your credit to the point that you have 5 trade lines.

Other steps to follow

Once you have your debts in order, next make sure you have a saving account in your name. If you are married, with a wife, this shouldn’t be a problem. But if you’re single, have your earnings, the money in the savings account should be different and can have a name on it. Step three is that all debt must be paid down within a two to three year period. This means you cannot establish any credit unless you have some debt cleared up.

If you cannot establish a credit record, using a store card in which you gauge your purchases, Secured credit cards with a deposit, because they’re akin to secured loans, things that get your credit Mostly when you pay off your secured loans. Secured credit cards are a good way because you’re borrowing your own money before spending. If you are trying to rebuild, there’s a limit to what you can charge. It also helps with your credit, because the purchases are to be paid for in full. But wait, don’t carry that amount the rest of the month. You may have to pay off the secured card before your purchase can be made. Once a secured credit card report is available, you have to make sure you pay every month on time and even pay twice a month. It’s up to you.

After this, and you still haven’t started to build credit, and that is hopefully not your problem, it’s time to go out and prove you can control your finances and be good with credit. Dun & amp Bradstreet is a company that has thousands of businesses dealing with credit, the United States, South America. This means businesses such as computers, dampen, installation, office supplies, office products, cell phones, and even some residential businesses. They report your credit profile for you and alert you in case of someone stealing your information. This is a good company to go with because you have to protect your credit at all times. It’s a good company because they will advise you on how to get your credit back.

After receiving the credit

Once you have a report done and working, go out and buy a home or whatever, tell them that you’re ready for it. Hopefully, six months down the road, you will have bought a home and paid the loan in full before you got started or before your credit went down the drain.

But like I said earlier in this article, once you have maintained your credit for six months, or less, you have to go into the realm of purchasing a vehicle. Some auto lenders will work with you, but let’s say you have gotten off of the right track and have a good credit score of say 700 or above. Let’s say you want to buy a house, right now you can only get a home loan with a mortgage of say 580-620. Well, some places will look at you better than that and work with you. They will say, okay you have been so good, have one of these things that will help you, let’s see how we can help you out. The dealership I go to will tell me that I should have a credit score of 680 or above, based on the reason you applied and all that I go through. Most places have no problems working with you, but you may ask, why should I even go through the process when I know I’m already sitting in a car or moving out. Well, ask yourself, why go through the car or home purchase when you can go and start working for the rest of your days. It’s the same thing at a minimum you will have a great home, apartment, or car and you never have to worry about them being taken away from you.

So as you can tell, how to establish good credit primarily begins with paying on time, using your cards or smart as it may be saving a little, but that’s the goal you want to have anyways.

Look through my other financial posts on my blog: