How To Get Credit – Various Methods

September 23, 2011

How to Get Credit

IF you are just starting off like just graduating high school and college, or a just looking to build a credit score, and asking your self how to get credit, there are many different methods that you can use to enable you to establish a good credit score. This article will provide you with multiple ways that you can build a credit score as well as keep it high which will provide you with a lot of freedom that a person with a low credit score can not enjoy.

how to get credit

How To Get Credit Methods

  1. Bank Credit Card – The first how to get credit method you can use is to apply for a credit card designated for people just starting out. These can be found through the bank with whom you are banking with or your families bank. Typically you should be 18 in order to obtain a credit card, but if you have come to this information on how to get credit being younger than 18, then you may still be able to recieve a credit card under an authorized user at your bank, like a parent or a family member. Remeber with this option, that people under 21 have to either provide proof of a source of income or have a cosigner to enable them to get a credit card.
  2. Other Credit Cards – If you cannot get a credit card from your bank, then you can also apply for one through an apparel store or something similiar, like your favorite store or even a gas station card. Terms from these department stores often come with higher payments but can be a great way to build a credit score with as they submit your information each month to a credit bureau.
  3. Secured Credit Card – A secured credit card is another option for beginners when it comes to how to get credit. A secured credit card is essentially a credit card that requires you to have a savings account as well which has 100% to 200% of whatever amount of credit you desire to have. Your payments on your credit card will come right out of your savings account. So if you want 200 dollars a month in credit, you will need to deposit 200 to 400 dollars each month into your account. This option is the easiest one to use when it comes to finding a credit card for beginners. For this how to get credit option, make sure that the secured credit card provider actually does post your history to credit bureaus as some do not.

How to Get Credit – Building and Keeping Good Credit

  1. First off, do your best to not put out a lot of applications during your quest of how to get credit. Every application you submit will come up on your credit report. With this in mind, research what companies have been most likely to supply first timers with credit cards.
  2. Credit cards have a balance called a credit line, which is essentially your limit to how much you can spend. When you get your credit card and for example you have a credit line of 800 dollars, you don’t want to go over about 20 percent of this total, so you would only spend around 175 dollars. This will both make it look like a responsible credit card holder as well as have the payments low enough to be able to afford on time payments.
  3. The last how to get credit method is to pay ontime. This is obvious, but paying on time is pretty much the best to boost your credit score.

Hopefully this information on how to get credit was very useful to you and great luck getting your first credit card.

Category: How To Get Credit

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