Establishing Credit - Strategies for Young People

MRR and PLR Articles Pack

Below is a MRR and PLR article in category Finance -> subcategory Credit.

Title:
Establishing Credit - Strategies for Young People

Word Count:
397

Summary:
If you have a limited credit history you will need a solid plan to gain ground in the world of credit. Here are some strategies and guidelines for establishing a good credit history.


Keywords:
establishing credit,credit cards


Article Body:
Establishing Credit may seem like a daunting task to a young person, but a good strategy can help take some of the sting out of the process.

Start by opening a checking and savings account in your name. This alone will not establish credit, but it will get you on the map and provide much needed credibility with financial and lending institutions. Keep accurate records of your checking account balance and make sure to never overdraw on your account. Bouncing a check will send up red flags with potential creditors and diminish the likelyhood of establishing credit. Good credit that is.

With a limited credit history you probably won't qualify for a major credit card yet. Therefore you may want to consider opening a charge account with a large oil company (e.g. Exxon, Chevron, Mobil, Texaco) or a local department store (as long as the store reports to the three major reporting agencies). In general, oil companies and department stores do not impose the rigorous standards of performance as do the major credit card companies. So obtaining one of these cards will be much easier in the beginning.

Another step you can take in establishing credit is to put one or more of the household utilities in your name and pay the bill on time each and every month. Your responsible payment history will be collected by the three major credit reporting agencies(Equifax, Experian, and TransUnion) which will help you establish a good credit rating.

Points to Remember When Applying for and Using a Credit Card:
  • Credit cards are not a source of free money - misuse can damage your credit.
  • Make sure you understand the "Terms and Conditions" of the card including due dates, interest rates, fees and grace
    periods before applying.
  • Keep monthly charges manageable - don't go overboard on your spending
  • Don't over do it by getting numerous credit cards
  • Pay the amount in full each month.
  • And always pay your bills on time

    By following the simple guidelines above, you will eventually prove your credibility. And in doing so, will qualify you for an extended line of credit.

    Undoubtably, establishing credit is a process whereby you have to prove to creditors that you are a resposible consumer, have all of your financial affairs in order and you can pay your bills on time.




    You can find an AI generated version of this article here: Establishing Credit - Strategies for Young People.

    You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.

    • “MRR and PLR Article Pack Is Ready For You To Have Your Very Own Article Selling Business. All articles in this pack come with MRR (Master Resale Rights) and PLR (Private Label Rights). Learn more about this pack of over 100 000 MRR and PLR articles.”