To begin building credit, try applying for a secured credit card. Many major banks offer secured credit cards. Usually the bank will require that you pay a deposit equal to the card's credit limit. Using the card then helps you build credit. You could also apply for a small loan from a local bank or credit union.
Many lenders view bank accounts as signs of financial stability and consistent savings behavior.
Most lenders base their lending decisions on creditworthiness. Obtaining and reviewing a copy of your credit report can help you understand how you measure up to a lender's standards. Visit Annual Credit Report to receive free copies of your credit report every year.
Some credit reports include errors or out-of-date information. If you find errors on your credit report, contact the credit reporting agencies or the creditor directly to ask for a review. Contact information for the credit reporting agencies is found below.
Making timely payments is one of the best ways to establish yourself as a good credit risk to future lenders.
Once you have credit, use it wisely. Charge small amounts on each card, and don't max out your credit cards.