Establishing Credit ? What You Need To Know Part 2

In my previous article "Establishing Credit ? What You Need To Know Part 1" I discussed the need for a good credit history and what lenders were looking for prior to loaning an individual money or additional funds based on their credit history. This article will go into the necessary steps someone needs to take in order to initially establish their credit history.

The first and easiest step is to show any potential lenders that you actually know how to handle money. This can be easily achieved by opening either a savings or checking account (opening both would be better) in your name. As you successfully use these accounts you will prove to a lender that you can handle money and are ready for the increased responsibility that comes with having additional credit.

Another means of establishing credit actually involves borrowing funds and then paying them back over time without any late payments. Although this method to establishing a good credit history is quicker and very effective when compared to the long drawn out procedure of making withdraws and transfers to your savings/checking account it comes with the drawback of the cost associated with obtaining the loan in the first place. If you're having trouble obtaining a loan but still wish to use this method to establish your credit history then seek out a friend or relative with known good credit and have them cosign on a loan for you. Remember this is asking a lot from that individual so please don't abuse the trust they put into your ability to repay the loan on time and without problems.

Other popular methods of establishing credit include applying for credit cards or department store cards. Again, although this method is very effective for establishing credit (provided you make your payments on time) it could be costly if you start to carry a balance on these cards. Always check to see that there is no annual fee and make sure you are aware of the financial charges imposed against you if you should decide to carry a balance on any card you have. Obviously the best plan is to always pay your balance off in full each and every month. This allows you to build your credit history and avoid being buried under a mountain of high interest debt.

A word of caution ? identity theft and credit theft is a very real and dangerous problem in today's society so you want to make sure you do everything you can to protect your newly established credit history. Always make sure to secure your credit cards and never let anyone obtain your personal identification number (PIN). If you have numerous credit cards avoid carrying them all at once. Instead just carry the card you normally use and file the rest away in a safe place. Always make sure to keep information such as contact numbers and account numbers of the cards you have been issued. This will help you if you ever lose or have a card stolen.

If you find that you have lost a card or had it stolen simply contact the company that issued the card and report your situation. If the card hasn't been used prior to your reporting it lost or stolen then you're relieved of any future financial liabilities against the card. If it has been used prior to your reporting then you may be held accountable for up to $50. Finally, always be cautious about who you give your account number to and remember to keep all receipts and records that are associated with that particular card.

Establishing a good credit history isn't that difficult if you start small and work your way up. It will take some time but if you do it right it will definitely pay off in the future and allow you the opportunity to obtain credit for the items you really want to purchase or may really need.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com He provides more debt relief, consolidation and free credit counseling information that you can research in your pajamas on his website.

---

Reward Credit Cards: Get the Best Rewards Card Incentive Program

A good credit reward card can contribute to your retirement... Read More

Credit Reports ? Why Your Credit Score is Important

If you have never heard of a FICO score before,... Read More

Taking Control of Your Credit History

Your credit history is important; in fact, in this day... Read More

Choosing a Credit Counseling Company

If you have considered credit counseling as an option to... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time... Read More

Online Credit Report and Online Credit Reports

Online credit reports are easily accessible to those interested in... Read More

Useful Tips on Using Credit Cards

Here are some useful tips on using credit cards. Whether... Read More

Credit Card Incentives

Credit card companies want your business. After all, lending money... Read More

It Is In Your Best Interest To Do The Math On Your Credit Card Interest

If you begin foaming at the mouth once a month... Read More

Learn How to Improve Your Credit Score

Having a damaging credit record can hurt you in many... Read More

FREE Credit Report Offer - Careful, It Might Carry Hidden Charges

FREE credit checks or free credit reports. What are they... Read More

Credit Cards, Merchant Accounts, and Your Bottomline

Q: I'm opening a gift shop and want to be... Read More

Establishing Credit ? What You Need To Know Part 1

Establishing credit is one of the most important things you... Read More

Beware of Bogus Credit Repair Companies!

So-called "credit repair" companies claim they can remove negative information... Read More

Protect Yourself Against Identity Theft

Identity theft is when someone uses, without permission, your personal... Read More

Bad Credit Loans For Those Who Seek Alternatives for New or Old Car

You can still save money on a Bad Credit Loan... Read More

Credit Cards - The Top 3 Things You Need To Know

Today there are so many different credit cards available, student... Read More

Ways to Look Good without Selling Your Soul to the Credit Card Sharks

1. Buy clothes at thrift stores. BEFORE you buy them,... Read More

10 Dirty Tricks Credit Card Companies Play

The credit card companies make billions each year in legitimate... Read More

The Advantages of Credit Cards

There are many evils associated with credit cards, but there... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

Identity Theft ? Guard Your Childrens Social Security Numbers

Identity theft is a growing concern among Americans, and rates... Read More

Looking for that Low interest Credit Card?

If you have been shopping around for a Low Interest... Read More

Getting Married? What Are The Finance and Credit Implications?

There is a big difference between looking after your own... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time... Read More

How to Evaluate and Raise Your Credit Score

Why do some people get offers for pre-approved credit cards... Read More

Avoiding Credit Card Traps

The next time you open your credit card statement, take... Read More

How to Deal with Hire Purchase Debt

WHAT IS HIRE PURCHASE/CONDITIONAL SALE?Although people often talk about "buying... Read More

Credit Report ? Look Out for Your Debit Report, Too

Most consumers are aware that there are companies that keep... Read More

Lower Your Credit Card Interest Rate Now!

With today's credit card companies, there are many opportunities to... Read More

It Takes Credit To Build Credit

Using a credit card wisely is an important step in... Read More

Defeating Credit Card Debt With Self Control

Credit card debt is a major social problem in some... Read More

The Best Strategy To Erase Credit Card Debt

Credit card debt is a growing sickness in the United... Read More