Credit for a #COMEUP

As a #COMEUP, I lack financial backing. I found steps to attain credit. It not only help in a #COMEUP situation but all who are young and with no credit history.

1. Get a secured credit card.

A secured credit card is just like a “regular,” or unsecured credit card, only you are required to put down a security deposit – typically $300 to $500 – to provide assurance to the creditor that you will repay your debt. Your credit limit is often the amount of your security deposit, or a percentage thereof.


2. Only charge what you can afford to pay off in full.

Building credit means consistently demonstrating your ability to pay back any money you borrow. Your goal is to prove to creditors and lenders that you can responsibly manage debt. That’s why it’s smart to start small – Only charge purchases that you can afford to pay off in full every month.


3. Pay on time every month.

The most important thing you can do to build and maintain a good credit score is paying all of your bills and debt obligations on time every month. Even one late payment can significantly damage your credit score, especially early on.


4. Avoid applying for numerous accounts.


Each time you apply for a credit card or loan, your credit score takes a small hit. And there’s no point to chipping away at a credit score you’re trying to build up, especially when you haven’t yet demonstrated that you can handle just one credit card. Instead, use that energy to prove to yourself that you can keep the balance low on one credit card and pay the bill on time every month.


5. Check your progress by checking your credit report and score.
After six months of timely credit card payments, check your status by viewing your credit report and score. Pay special attention to what’s on your credit report and any positive or negative factors listed, so you have a better idea of what you need to work on next. Also make sure to take a look at your credit score – It will help you make sense of your credit report and give you an idea of how well you’re doing


6. After a year, apply for an unsecured credit card.


Twelve months of timely payments should be enough to show your credit card company that you can responsibly manage debt. Now’s the time to give your creditor a call to see if you can make the switch from a secured credit card to an unsecured credit card. An unsecured card frees you from your security deposit obligation, will likely carry a higher credit limit and may offer useful perks like reward points.


Check out the full article and other credit advice here: http://blog.quizzle.com/2010/04/how-to-build-credit-from-no-credit-in-6-easy-steps/