How to Get Credit the Smart Way

Many people do not understand how the credit game works. Some people get credit, some don’t. The first thing you will want to do, to get credit, is to open a bank account. Most credit card companies will ask you for your account number when you apply. Next you want to look at the options available to you. Look for the lowest interest credit card you can get, and choose a company that is well known. Start with something small like a department store credit card, or one to a national gas chain. Going with “Bob’s Store” is probably not as good of an idea as going for something like “Macy’s”, as the latter is well known and you know they will report to the credit reporting agencies. Any business that does not report will not help you as you are trying to build credit, hence the need for reporting for your credit report.

Once you have your credit card, be sure to use it. The best way to show responsible purchasing is to show that you use your card and you pay it on time. Late payments will not help your credit rating, nor will having a card and not using it. Once you have used it for several months you can then try applying for something more national, like American Express, Visa, etc. Just be sure that whatever you apply for and get, you use it wisely.

If you still cannot get a card, try a secured card. You can go to any financial institution and request one. They will give you a card for a specified credit amount; you will give them that amount of money to use as collateral. After you have used it for awhile, you will be able to show that you are wise with your money. If, at any time, you are denied credit, ask them why. Under law, they are required to at least give you a free credit report so that you can see what is on your credit history that may be influencing their decision.  ■