It seems at one point or another everyone has had a credit problem.  This could be caused by a number of factors including loss of job, illness, divorce, incarceration, moving, and the list goes on.  Sometimes it comes from identity theft as well.  The first thing to remember is that credit is like a drivers license, it is a privilege and not a right.  Banks, creditors, and lenders are not required to loan you money but do so based on your past financial and payment history.

Remember that banking and lending services are not available to everyone because they are not a privilege but a right.  As with any privilege anyone who misuses or abuses it will have it taken away.  Also those people with little or no credit will find that unfortunately they are not the most desirable customers from the lenders and banks point of view and will typically receive a higher interest rate on loans.

The following is a list to help build or rebuild credit history:

• Establish a steady work history
• Pay all bills promptly and do not get behind on them
• Open several checking accounts and avoid bouncing checks or overdrawing the account.
• Open a savings account and make regular deposits(even if they are small).
• Apply for a local store credit card, make some purchases and then make regular payments to pay it off.
• Apply for a secured credit card from a major financial institution if you can not qualify for a regular one.
• Apply for a small loan using your savings account as collateral
• Get a co-signer on a loan, and then pay back the loan on schedule

This entry was posted on Wednesday, June 3rd, 2009 at 3:27 pm and is filed under Credit Repair. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.