How to establish Credit Scores.

Establishing credit scores or more attainable than you think. If you are new to the credit scene I am sure you have heard how important it is to establish high credit scores for better rates and terms on loans. Heck even employers are pulling your credit to determine how responsible you are based on your credit history. In this article I will give step by step instructions on how to establish credit quickly.

Secured Credit Cards
Secured credit cards are one of the quickest ways to get a credit score. A secured credit card is a card where you deposit money into a account that the bank designates for you. Once the money is deposited into the account at that point they issue a credit card that will report to all 3 credit bureaus. The deposit that is required is typically around $250.00 dollars of your own money. With good payment history you will start getting all kinds of credit card offers. You want to make sure you are never late on a payment; if you are your credit score will drop around 150 points. After a late payment has taken place you just defeated this entire process. Also make sure you keep the balanced owed less than 30% of your credit limit. Typically if you charge up your card below 30% of balanced owed your credit score will increase. You also want to make sure you have at least 2 secured credit cards. Orchard Bank Card is a good secured credit card with low fees.

Checking Account
Make sure you are main stream and you deposit your money into a checking account somewhere. When getting a loan all banks want to see what you are doing with your money. It would not hurt to have a savings account at the same bank as well. When you attempt to get a mortgage, one of the needs items a loan officer will ask for is a history of your checking account and any savings you might have. Checking accounts are a sign that you are taking responsibility of your money.

Rental History
Make sure you are renting a house or apartment. This is a great way to establish credit. Lenders look at this as well. They want to make sure you can pay rent on-time as well. It looks better to be renting as opposed to just living with someone rent free. Most lenders like to see at least 24 months residence history with 12 months rental verified.

Utilities
Your utilities need to be in your name. Make sure you don’t put them in someone else’s name.

Student Credit Cards
If you are a student, part time or full time, student credit cards a great way to get credit established. You don’t even have to be at a major university, it can be your local community college.

Auto Loans
Auto loans are a great way to establish credit scores. Usually auto loans are easier to get than most loans. This type of loan will report to all 3 credit bureaus as well.


Everything that was mentioned in this article is what it takes to get credit scores established so you begin your journey with credit. Remember to make sure you are never late on anything. Good luck.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, Internet identity theft software, secured credit cards, student credit cards , mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness