Establishing credit

 The Mortgage U! Mortgage Education Made Easy

For all your mortgage needs:
Dave Zwierecki
Phone 888-418-4467

 Home  |  About Us  |  Calculator  |  Contact Us  |  News   |  Blog  |  Sitemap 


Establishing credit
There are many ways to establish credit one way is
by opening individual savings and checking accounts in your name. Over time, your deposits, withdrawals, and transfers will demonstrate that you can handle money responsibly.

If you have bad credit or no credit, you can establish credit history using secured cards.

If you have been banking at your bank for a long time, you may be able to get a small personal loan. A good way to establish credit is to take the small loan($500-$1,000), and leave it in an account and have the money automatically deducted from that account every month, for a year. By leaving the money in the account and having the automatic withdrawl, you will know that there will not be any late payments on the loan and the money will be there. The reason for doing this for a year, is that it will establish a credit history for you.

Obtain your first credit card either from a dept. store or from a credit card vendor. Your first credit card will probably only have a couple hundred dollar limit but this is perfect and with proper use will establish your credit and increase your scores quickly. Never max. out the credit card, keep your balance at 30-40% of the limit or less, and pay more than the minimum payment. These tips will help you to establish credit in no time at all.

Car loans are another way to establish credit. If you are thinking about getting a new car make sure you are getting something you can afford. Everyone wants a nice new expensive car, but not everyone can afford the monthly payments. Be smart about the car and financing you choose, don't stretch yourself out too much with the monthly payments.

If you decide to get a loan from the bank first ask if they report to the credit agencies every month. Some banks do not report and if your bank does not report your efforts would do nothing to help your credit score. It would however give you a good alternative tradeline.

When trying to establish credit, be aware that some places that offer credit may only report to the credit agencies if they have negative information to report. These include some furniture or appliance rental companies and some of the buy-here-pay-here used car dealerships. This type of credit reporting does not help your credit.


Contact Us
If you have any questions regarding our products, you can contact us by calling or e-mailing us and we'll get back to you as soon as possible. Thanks!

Current Address
City, State, Zip Code
Purchase/Refinance/Debt Consolidation


 Information listed above is to be used for educational purposes only and is not guaranteed

Home | Contact Us | News | About | Sitemap | Bad Credit | Homebuyer | Sitemap3 | Sitemap4 | Sitemap5 | Sitemap6 | Sitemap7 | FS Home Loan | No Money Down | First Security | Blog| Privacy Policy

Copyright 2007 First Security Financial Services, Inc.  All Rights Reserved... First Security Financial Services is a full service mortgage provider offering  mortgage educational tools in addition to hundreds of mortgage programs.                                                                                                                     Broker Outpost | How do I qualify for a low mortgage rate | Rebuilding Credit | Index | Quiken Loan | Frequently Asked Questions - Credit