If you’re trying to establish credit history for the first time, this article is for you. Here are ways on how you can start your personal credit history without getting denied:
Open a checking account. Your credit score would not be required to open a checking account. Although this will not be reported to the credit bureaus, it can help you get approved for your other credit applications.
Employment history. Having a solid employment history can also get you the approval you need. Many short term lending companies require only that the applicant has a steady source of income to be approved.
Residence history. Owning a home or renting a home also has bearing on a prospective lender’s decision. If you have been moving from one apartment to another, it can send out a negative impression to lenders.
Utility Bills. Having utility bills (electricity, gas, cable, telephone, internet, etc.) in your name can be a good proof of your credit-worthiness if you don’t have a credit report. If your past receipts show that you’ve been a good payer, you can convince a prospective lender to approve your application more easily.
Department store card. Department stores have their own credit cards for their customers and credit history isn’t needed to get one. Thus, applying for a department store card is a good way to establish your credit history.
Gas station card. Like a department store credit card, a gas station card is used in purchasing gas or availing car services from a specific gas company. You also don’t need a credit report to get one and you can use it to start building your credit.
Secured credit cards. Credit card companies also offer secured credit cards for people with bad credit and for those with no credit history. This type of credit card is secured with an advanced deposit in the cardholder’s account. Thus, you can easily get approved whether or not you have a credit history to show. Secured credit cards are great tools both for rebuilding bad credit and for establishing credit history.
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