Before applying for credit or a credit card, go to annualcreditreport.com. As a consumer you are entitled to one free copy of your credit report each year from each of the three credit bureaus, and this is the only source where you can obtain them. Be sure to print out the credit report before leaving the page, because you won't be able to pull up that credit bureau's report again for another full year.
Once you have your credit report, go through it with a fine tooth comb making note of any errors you find. Improving your credit report and ultimately your credit score demands that any errors be corrected immediately. Understand, however, that the most important factor in credit scoring is a history of on-time payment, which determines over 33 percent of your score.
If you are just starting out and have no credit history, then your best bet is to go to a major bank in your community and ask about their secured credit program. You will have to establish a savings account of $250 or more depending on the bank's requirements. With the savings account established, they can then issue a secured credit card in your name with a limit equal to your savings account balance.
One of the benefits of a secured credit card is it builds credit in the fastest way possible, because your payment history is reported regularly to one or all three credit bureaus. Never be late with a payment, and you'll be on your way to establishing a solid credit history. It is often possible that after a period of time, the bank may even convert your secured card to an unsecured card.
- My credit score is 743. Every time I apply for a credit card I'm denied. I'm told I have too many balances on cards. I have two credit cards only totaling less than $2,000. I'm not sure what the problem is. I own a home, I make $85,000 on my own and I also have income coming in from my husband. What am I to do? Good credit, almost no credit cards, and I'm never late with anything. Any suggestions?
- If I just filed for bankruptcy at the beginning of the year, when can I get another credit card to start building back my credit?
- I am looking to establish good credit so I can buy a home for my family. What kind of credit card should I start out with?
- Are Discover Card credit cards any good?
- Which bank offers the best debit card?
- Is a credit score of 725 considered good?
- Why do you rate American Express credit requirements as "good credit" to secure a card? I thought to qualify for an American Express card you have to have excellent credit.
- Supposing you have a perfect credit score of 800 or better; which credit card offers the highest credit limits?