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Bad Credit
Lending Solutions
In order to obtain good credit standing, you have to have a
credit card. However, there is a slight hitch; you can't obtain a solid
credit standing if you can't receive credit in the first place.
Therefore, here are some ways to establish your credit
Apply for a secured credit card. How does this work? The amount of
credit is based on the amount of money you deposit into a checking
or savings account. The credit card company issues you a card (more
akin to a debit card), and the amount used is deducted from your
checking or savings account. After some time has passed, and you
have paid your bill on time, you can ask the credit card company to
issue a regular credit card. One well known company that offers this
service is Capitol One.
Another way to establish your credit is to apply for a department
store card. Once again, as long as you pay your bills on time, you
credit rating will begin to rise. However, do not attempt to apply
for too many cards, as the credit reporting agencies may determine
you cannot handle the line of credit based upon your salary. When
you receive all of those credit card offers in the mail, immediately
check the APR rate as well as their terms and conditions. Not all
credit card companies offer low rates. Once you establish credit,
and are considered an account in good standing, you can contact the
credit card company and ask for a lower rate. Depending upon your
payments, line of credit, and usage; they will ascertain whether or
not you qualify for a lower rate.
Also keep in mind that most credit card companies, who offer credit
to anyone without any credit standing, may do so at a higher rate
than for others who have established credit. Ensure you open a
checking or savings account. You may need to give this information
to qualify for credit.
These are some of the ways to establish your credit. Others may
include applying for a loan; but since you do not have any credit
history, you may be turned down unless you have a co-signer. The
best approach is to begin with a department store or secured credit
as mentioned. One other important note: Upon securing a credit card,
you will be given a line of credit. It could be $500 or more. Do not
run up your bills immediately. Do not use your card online, unless
the credit card company has a Zero Liability Clause; and do not
apply for other cards unless you are sure you can pay the monthly
bills. Finally, ensure you pay a bit more than the minimum due. This
can help your credit rating increase down the line. A great resource
I've found is called the
CREDIT SECRETS BIBLET. This program promises to show you how to RAISE Your
CREDIT SCORE up to 249 Points in Under 90 Days!
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