Building Credit Basics

Having a strong credit profile gives you the ability to buy the things that you want even though you don’t have the cash to pay for those things outright. A major purchase like a car or a home can be an expensive lesson in not being prepared credit wise. The interest rate that you pay is directly rated to your credit history.

Credit Reports

Credit reports are rated with scores. A low credit score can be a result of no credit or bad credit.  Bad credit can be not paying a cellphone bill, parking ticket or a credit obligation.

Establishing credit with a company that reports to the credit bureau and making payments on time is the best way to build credit.  Some company’s are more lenient than others. A department store is usually easier to get approved for first credit then a bank.

Starting Credit

Before you apply for credit you should open a bank account either checking or savings. Having a job and a bank account can be enough to start credit.

Once you get your first credit line pay make payments on it for a few months before you apply again for more credit. Having too many inquiries on your credit report can count against you.

Fingerhut is an online catalogue that has many different types of products for home, health and car. You can apply for free to see if they will approve you. The application is safe and you can an answer in an instant, check them out.  Fingerhut Credit Account issued by WebBank