If you're applying for credit for
the first time or trying to re-establish your credit, the following tips can help.
First and foremost, beware of credit repair "clinics" or companies that offer to fix your bad credit history. Many times their promises are misleading and the fee for
services is high. No one can eliminate a bad credit history if it is an accurate history.
Demonstrate stability by documenting that you have a steady job and have lived in the same place for an extended period of time.
Demonstrate your ability to make payments on a loan by showing that your income consistently exceeds your expenses.
Use your assets as collateral on a loan.
Provide credit references.
Use your checking account to show that you're financially responsible.
Make regular payments into a savings account. This will show maturity in handling finances.
Join a credit union. Credit Unions are more likely to take members' needs and circumstances into account when applying for credit.
Apply for a gasoline or department store credit card. By using the card and making payments on time, you can develop a positive credit record.
Apply for a secured credit card. These are established in conjunction with a savings account that serves as collateral for your purchases.
