Establishing Good Credit

It's not as tough to establish or rebuild credit as you may think. Here are some strategies:

• Open a checking account. Keep your checkbook balanced, and don't overdraw your account.
• Open a savings account. Make regular deposits and avoid taking money out of the account. To help you establish credit, some financial institutions will allow you to take out a small personal loan secured by your savings account.
• Join a credit union. These organizations often may be more willing to take your personal and financial situation into account when reviewing your application for a credit card or loan.
• Get good credit references. Even if you've never had a credit card or installment loan, you can demonstrate good standing by having a stable relationship with a bank or credit union, and a record of paying your rent and utility bills on time.
• Apply for a gasoline or department store credit card. When you use them, pay on time to develop a positive record with the credit bureaus.
• Get a cosigner. Sometimes you can begin to build good credit history by having someone agree to assume your responsibility for your loan or credit card if you aren't able to make payments.

 Article provided by CU Village.com through its Financial Resource Center content product.