There
is a point in your life that it is required to move on from having no
credit and building up a good credit score to secure your financial
future.
It makes no difference if you are trying to rent your first
apartment of if you are applying for a loan to get something huge, you
will have to have a good credit history for your name so that the person
that you are working with will understand that you are reliable and
very responsible for their investment. However, there are some people
that do not know how to establish credit.
Having bad
credit is much worse than most understand. You can be denied loans and
have trouble with some of the financial institutions because you will
find that you are labeled as high risk. Identity theft is a very good
reason for the false negative credit to your name.
It
is a bad circumstance but you should not think that anyone is going to
go easy on you. If you put it all out there, you will not loan money to
a friend that has been slow to repay others in the past. There are
unreliable things that people will notice first and they will not care
to hear the excuses no matter how good you think they are.
The key is to be safe and to build credit
without risking mistakes that will result in a bad " credit " history.
For example, your parents could put one of their monthly household
bills in your name while you are still going through school.
If these
bills are not paid on time, you will gain good credit. On the other
hand, it is vital to understand that if you miss some payments, it is
going to get you started off on the wrong foot.
Another
factor that plays into your worth to the creditors is to keep the same
job for at least two years or longer and have the stable checking or
savings account with a good bank are just a few things that you can do.
You should also think about having a stable cash flow and
responsibility with finances. You can make deposits and keep your
balance at a positive number with a bank account and have a steady
income show that you are not at risk for missing any payments or leaving
town to avoid facing any collectors.
Your address, bank, positive bill
history, and employment information can be added to your credit report
at your request if it is not already there. Your credit is
an important part of everyone’s life. Having good credit will help you
in being accepted for automobile, home, and other loans.
If your score
is bad, you will often times be rejected for loans because you will be
labeled as a bad risk and it is assumed that you may not be able to pay
back the loan on time. Building good credit is going to be good when
you do it early so that you can get a head start in the right direction
for your financial future.
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