A great credit history doesn’t just happen - it’s a result of conscious effort, hard work and dedication. Students, homemakers, divorcees or other consumers who need to build their credit history should follow these tips:

1. Open a bank account. A savings or checking account may not affect your credit score directly, but the account activity will demonstrate your ability to handle money responsibly to banks and other potential lenders. Writing bad checks or overdrawing from your bank account are negative indicators and damage your credibility.
2. Apply for a low limit credit card. Plan to pay your balance off each month and follow a budget. If you must carry a balance, never pay late and don’t exceed 30% of your available credit line. Department store and gasoline credit cards are generally easier to obtain than major credit cards such as a MasterCard®, Visa®, or Discover®. You might also try a credit card for poor credit on our site >>>
3. Apply for a small loan and repay it promptly and on time. To increase your chances of being approved, plan to apply a large down payment on the loan. If your application is denied, consider getting someone with an established credit history to co-sign on your behalf.

Financial institutions must make credit equally available to all creditworthy applicants. Under the Equal Credit Opportunity Act, you have certain rights that protect you against unfair credit discrimination. Under this Act, you cannot be denied credit because of your age, sex, marital status, race, religion, national origin, income from public assistance, intent to have children or birth control practices.

If you suspect discrimination by a bank, savings and loan or credit union, ask for the name and address of the federal agency that enforces the Equal Credit Opportunity Act (depending on the institution, this will be either the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision or the National Credit Union Administration). The Equal Credit Opportunity Act mandates that the creditor must give you this information.

Posted in Credit Tips

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