Maybe you've recently finished restoring your credit or maybe you're young and haven't used credit yet.
In either case, it's easy to build a positive credit history quickly and cheaply. Most times you can build a glowing credit report in just a couple of
weeks. First, you must make sure that you're credit report is spotless. Most times, creditors will protect their liability by giving you several
reasons for your credit denial. If you receive a denial letter that states, "Derogatory credit accounts & insufficient positive credit accounts,"
don't worry about the positive credit until you've repaired the bad credit. That creditor would've probably denied you regardless of your bad credit
history.
If you have any bad credit on your credit report, see the Restore Bad Credit file in this web site. Now that your credit is perfect, you are ready
to build a positive credit profile. Follow any or all of these techniques to stack your report with A-1 listings. But, beware, if you stack too many
open accounts, or too many credit inquiries, you will be denied based on debt to income ratio and excessive credit inquiries. If you already have a
problem with excessive credit inquiries, see the Erase Credit Inquiries file in this web site. Piggy-back on a Friend If you know someone (like a good
friend or parent) who has good credit, you can "borrow" their good credit listings. This friend must have credit cards, and must trust you enough to
allow you to become an "authorized user" on his credit cards. Just have your friend call his credit card company and request that you be placed on
his card as an authorized user. A copy of the card will be sent and you may simply return it to your friend. Your credit file should soon show an
open account with all of the positive history that your friend has created over the years with that credit card. A small footnote will show that
you are an authorized user of that card.
Remember, though, when a new credit grantor goes to review your file, he may insist that the balance on the card appear on your debt to income
ratio balance sheet. That shouldn't disqualify you for credit if your income is sufficient and you don't have an excess of debt in your file. Get
a collateralized credit card.
You can find many collateralized credit cards with a quick search on Google.
Do the Credit "Waltz" Most banks will help you to build credit by allowing you to borrow against an amount placed in savings.
Here's how you can "waltz" $500.00 to $1000.00 into a good credit rating without tying the money for more than a few hours.
Step One. Deposit an amount over $500.00 in a bank savings account. Explain to your account representative that you would like to build good credit by taking out a loan against that amount. Make sure you understand the terms of the loan. You must make certain that at the bank will allow you to pay the note off within 90 days without an interest penalty.
Step Two. Take your new $500.00 loan to another bank and repeat Step One.
Step Three. Repeat Step Two until you are satisfied that you have enough accounts to constitute sufficient positive credit.
Step Four. After ninety days, return to each bank and ask that each loan be retired with the $500.00 being held as collateral. Seek Easy Credit Many stores extend credit without tremendous regard for the credit standing of the applicant. These stores usually can be found in industries with small products or traditionally high mark-ups.
Here are a list of creditors who will often extend credit to those without much credit history:
Fingerhut
Radio Shack
Jewelers
Furniture Stores
Tire Stores
Appliance Stores
Auto Dealerships