Building Credit
Getting credit when you don't have any - or recovering from a credit catastrophe like bankruptcy - can be overwhelming. It's difficult to get new credit without a good credit history. But without credit, it's tough to build a good credit history.
To improve your image in the eyes of lenders, here is what you need to do:
- Open a checking and savings account (if you don't have them already)
Lenders want to know that you are part of the financial mainstream. They like to know that you have a checking account to pay bills and that you are saving for the future with a savings account.
- Get your credit report - if you have one
Next you need to see how you are viewed by the lenders. Most lenders' decisions rely on the information on your credit report. Your are entitled to one free credit report from each of the three main credit bureaus per year.
Visit: www.AnnualCreditReport.com
Basically this report contains identifying information about you, for example your name, address, Social Security number and date of birth. This report may also list any credit accounts, or loans opened in your name, along with your payment history, account limits and any balances you owe.
- Fix any errors or omissions on your report
Some credit reports include errors, for example accounts that don't belong to you or information that is misleading and out of date. You should read through your credit report and note anything that's incorrect.
- Add positive information to your report
The more information you can provide about yourself, the more comfortable lenders may feel extending credit to you. In addition having the same job or address for a few years can make you appear to be creditworthy in the eyes of lenders. You may also discover your credit report does not include credit accounts or other information that it should, for example: Is your employer or your job listed?, If you have had the job less than two years, your previous employer and job title should be listed as well. Is your address listed correctly?, If you have been living there less than two years, is your previous address listed also? Is your social securtiy number listed correctly? Is your phone number listed correctly? Does your report include all the accounts you have paid on time?
It's important to note that improving your credit score is a bit like losing weight. It takes time. Don't waste your time, put it in the hands of the professionals. Lexington Law can help you improve your credit score by removing negative marks on your credit report. Let the knowledgeable attorneys at Lexington Law Firm work hard to remove negative credit information from your credit history and make the whole credit repair process pain-free.
Click here to learn more about Lexington's services.
What You Should Know About Credit