Credit Repair

Can I Quickly Establish My Credit Score? How?

Many people who do not have a credit history at all sometimes ask questions like “can I start my credit score?” The answer is a big yes. There are plenty of different ways out there that you can try to establish and build a more than decent credit report. Having a good report matters a lot, especially in the present day world, where life of an average American consumer runs on credit. Your ability to obtain better offers on credit cards, mortgages, insurance policies, car loans, or personal loan depends mainly on how good your FICO score is. If you are looking for a home on rent, even the landlord will first look into your credit report to determine your eligibility to become a tenant. What is more, utility service providers also check this report to decide whether they should offer their services to you or not; if yes, whether they should ask for a hefty amount of security deposit. For example, with a bad credit score, your application to get a new phone connection can straightaway be rejected. Considering all these facts, it is really nice that now you want to start and build your credit. Following are the seven simple steps you can take to do just that.

Get A Checking Or Savings Account Opened In Your Name

You are not the first one; there are many people who keep thinking, “I must start my credit score now”, but they just keep on thinking and never take an action in this direction. Unless you start making an attempt, you will reach nowhere. Therefore, the first thing you have to do is to stop beating yourself up for not having any credit record at all. Don’t panic. Before you start getting credit, you must first get a checking or savings account opened in your name. You can open this account either with a Credit Union or with a bank.

Build A Good Employment History

You will also need a good employment record to maximize your chances of getting your credit applications approved. Therefore, if you are jobless, you must first get a job, something that should earn you a regular monthly income. Do not start making credit applications right away. Give yourself some time, at least 3 to 6 months. During this time period, you must focus on maintaining steady employment. Your employment history and the amount of money you earn every month will determine how quickly you can start and build your FICO score.

Start With Secured Credit

You must be wondering “who will give me credit even with good employment record when my credit score is still zero?” Your concern is typically not wrong. You may still be denied for unsecured credit, such as a personal loan. That is the reason why it is always better to start with secured credit. For example, you can easily obtain a secured credit card by making a certain amount of security deposit, such as of $500. Likewise, obtaining a mortgage loan should also not be a big problem because it is also a secured lending program, where the home you purchase is put as collateral against the money you borrow as part of the mortgage.

Apply For Utility Services

Another easy way to obtain your first line of credit is by applying for some utility services in your name. With a good employment required, you should not have much difficulty in getting an electricity connection, a telephone connection, or just any other utility service. The idea is to be current with all your bill payments because this is your opportunity to show that you can take a financial responsibility very well.

Do Not Make Defaults

With utility services in your name and with a good employment history, you can also qualify for other mainstream loan programs also, such as personal loan or others. No matter which type of loan program you go for (obviously that will depend on your specific needs and requirements), you must make all monthly payments in a timely manner. If you fail to make the payments within the due dates, you will still start building your credit score, but in a negative way.

Many people get so obsessed with the task of building and improving FICO score that they start thinking like this – “I will do anything to establish and boost my credit score”. Make sure you do not build up an obsession like this. Never borrow a loan or obtain any other form of credit just for the sake of building a high score. Do it only when you really need it. In brief, do not look for shortcuts. Be slow and steady – do it the natural way.

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Posted in Build Your Credit, Credit Repair | 3 Comments »

3 Responses to “Can I Quickly Establish My Credit Score? How?”

  1. Betty says:

    Very well said. Credit score is as important for a person as identification is. So to maintain a healthy credit score is our top most priority.So some sure shot tip is given so as to improve the credit score. The most important thing is open a savings account and try to make a good score of the savings because for applying a loan the bank statement is required .
    There should not frequent change from the job . The employment should be good and creditable. All this tips helps to improve the good credit score . Because for applying any utility service FICO score is good and we are eligible for any loan. This is more like when we are trying to take admission in a reputed institute our background score should be good that means the marks are good then only we can get admission . So is we want to apply for a loan or FICO score should be good.
    Thanx for this article posting

  2. rubu says:

    If you want to recover your credit score rapidly then clearly you have to understand the outline given below. When ever you go outside at store for purchase something then make sure that you’re purchasing should be for small amount. This will grant you a credit of small amount with a very reasonable interest. There is a good example in Texas is CONNS which is s appliances store. They will charge with a very reasonable rate of interest. You have to maintain your budget plan and make the down payment of half of your budget and try that you will pay off rest of the amount as early as possible. This will create some good entries in your credit file. You pay your credit amount on time and before the time period to prevent your self from bankruptcy filing. This shows your creditor that maintaining and improving your credit score. If you will follow the basic instruction given above then definitely improve your credit score. Anyone can recover bankruptcy filing in short time. You have to monitor your credit report time to time it is free of cost and also it doesn’t take much time. There are so many websites are available on internet that charges some fees so it advisable that don’t visit that sites if you are getting it in free of cost you can also visit FTC (federal train commission) site where you can get full detail of your credit report at free of cost.

  3. Albert says:

    Good credit score is the need of every body. Without it, you can do nothing in present day. The life of a normal person in America depends upon the credits so every body wants to make a good credit score very fast. If you go through this article carefully, you will be able to get a good credit score. First thing is to do that you should have a saving account in your name. It is the first step of credit history. Good employment record is also necessary. After getting a good job try to save some money for 3 to 6 months after that you can apply for credit cards. Your employment history of 6 months with a good salary will play an important role to have good credit. Secured Credit may be the best option for the beginners. It works like a prepaid card you can deposit some amount and can get the credit card. If you have a property, you can get a mortgage loan against it. The next step will be to apply for an electricity connection or getting a bill of telephone in your name and the billing should be done strictly in time.

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