You are very fortunate if you just graduated college or have university debt-free. However, if you are looking for credit, there are many options available. It is difficult to borrow income if you don’t have credit history. Although you can’t get a credit line right away, it is possible to quickly build one. These easy-to-follow steps will help you quickly build a credit history.
Open a bank account
Although bank accounts are not listed on your credit report but they can be used to establish credit. Many credit card applications require you to provide a bank account number. This gives you a foundation from which you can transfer revenue and pay bills.
Apply to a Credit Card
Next, apply for a credit-card. As declining credit can affect your credit score, you should apply for the card that is most likely to be approved. Retailer cards are a great place to start. You are more likely to be approved for a card than you might think, despite the higher interest rates and low limits.
Get your payments done on time
You will need to use your card to build credit. You can purchase a few smaller items that you can afford every month with your card. Then, spend your remaining balance each month on time. After three months, you will be able to apply for a better customer card like a Visa or MasterCard.
Spending budget is key to securing the card you desire. Negative purchases or excessive spending can quickly ruin your credit history. Remember that credit is not an addition to your earnings, but an additional way to invest what you have earned.
You should ensure that you have the funds to repay your investment immediately. This will help protect your credit score. To keep your credit card debt under control, spend more than you can afford each month.
Ask for an explanation if you are denied
Ask the lender why you have been denied credit. They are legally required to tell you. You can begin to fix the problem if you find out the reason you were denied. It is common to be declined for credit cards. This can affect your credit score.
You should be patient and pay your bills on time to build a strong credit history within six to twelve months. Once you have established credit lines, you should be careful to maintain your credit rating. You must also be responsible with your income and only spend what you can afford. This will allow you to have enough credit for any emergency.