8 Steps to Establish or Re-establish Your Credit

There are many steps that can be taken to establish or re-establish your credit. However, some actions
that you take can have a greater affect, and can help you to establish good credit in a shorter period of time.
The eight steps listed below will enable you establish or re-establish your credit quickly.

Steps to Establish Credit

When following the steps listed below, be sure that the creditor reports to one or more of the credit bureaus. If they don't, having an account with them will do nothing to improve your credit.

1. Open a checking account. Assuming you keep your account correctly, you can use this account as a credit reference.
2. Check about getting a loan with your savings account used for security. Pay off this small note on a short (three month) term

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   . Then repeat the process.
3. Apply for a credit line at a local retailer. This will be easier to get than a bank loan or travel card.
4. Apply for a department store or oil company credit card. These are the easiest to qualify for.
5. Get a secured credit card. This is a very important way to increase your credit score dramatically, especially if you don't have any credit cards now.
6. You might have good credit that you've forgotten about. Think back, and dig out past creditors that reflect good paying habits.
7. Go to an appliance or department store and make a large purchase. Pay 50 percent up front, and ask them to carry the balance for a specific amount of time.
8. If you are refused credit, find out why. It could be an easily corrected mistake. Fix it, and apply again.

If you utilize these eight simple steps, you can begin to establish or re-establish good credit within a matter of months. Once good credit is established, you will find it easier to get credit for things that you need, such as a home or car loan.

Repairing your credit is a different story.