Tips To Establish Credit For The First Time

Having a credit history is very important and it is all the more important in the current economic scenario. Its necessity is all-pervasive. It helps in getting a loan or for getting a good job. You will not be considered for promotion in your present employment if you do not have a good credit. Even getting a house on rentals will be a problem. So, for having a good credit history initially, there are a few steps and you should follow them scrupulously. - One of the best steps for getting a credit history for the first time is to open a checking account in a bank. Banks do not lay down on many difficult conditions for opening such an account. If you ensure to maintain an impeccable and flawless account, your efforts to establish a good credit will definitely have a great start. If you go for a loan, even lenders will consider a well-maintained bank account as a positive point because you are proving to them that you are capable of managing your money well. - You may be surprised to know that your employment history plays a vital role in establishing a good credit. If there are periods of breaks in employment or if you are not able to hold a steady job, that is not viewed favorably. Similarly, if you shift your residence quite often, that is also a negative point in the eyes of lenders. - To establish a good credit history, it is better to have as many utilities in your name as possible. Since you are trying to establish your credit for the first time, utilities like gas, electricity, water service, telephone or cable should be in your name. They may not have a direct bearing on your credit history but this point may definitely help. - Since you have not established a credit yet, you can choose to have a store credit card. If you have this card, you are eligible for some good discounts on your purchase. But, the only point that goes against these cards is that the ongoing interest rates on them are quite high. But, for establishing a credit history, you can opt for them because they are easy to get. You should also ensure that these stores report to the credit bureaus because only then, you can establish your credit. - Lastly, another easy way is to try for a secured credit. It is easy to get because there will be an asset linked to it. If you pay back this secured loan as per the repayment schedule, you can easily establish a good credit history. Likewise, you can also try for a secured credit card for which the bank or credit card company may insist that you should deposit an equivalent amount with them. You should understand that for establishing a good credit history, you should adopt patience. It can not happen instantly. Simply put, a good credit can be established if you adopt a disciplined approach in managing your finances. Raman Kuppuswamy writes excellent and informative articles on various topics. You may kindly visit and read his other articles on many other topics.


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