Insufficient Credit History? Noteworthy Secrets

Do you have an insufficient credit history?

To establish credit, you should get a bank account and keep it in good standing, apply for a secured credit card, and make timely payments to any and all accounts in your name. If you have been denied credit because your credit history does not have enough information about your past ability to pay off loans or handle debt, this is known as having an insufficient credit history and may reflect negatively on you. A credit score can not be calculated unless your credit history reports an account that has been open for at least six months.

Open a checking and savings account with a reputable local bank. Keep your account in good standing, as this shows your ability to manage money in a responsible way. As you build a relationship with your bank, you will have an easier time obtaining loans or credit from them when you need it.

Apply for a secured credit card with the lowest rates you can find. Your credit limit will be equal to your deposit with the credit issuer. After timely payments for at least one year, you will easily be able to qualify for standard credit accounts.

Make timely payments to all accounts in your name, including utilities and your rent. Though these accounts are not always reported to the credit bureaus, the account history can be verified by those you are seeking to obtain credit from.