For many people, personal credit is the pathway to financial freedom. Without it, there’s not much chance of getting your dream home or a new vehicle. One of the first steps that everyone needs to take is building a personal credit history. Here’s a few great ideas that will help you accomplish that goal.
- Getting a credit card with the bank where you have an account is a good first step. Most young people don’t have a credit history, but they have a relationship with their bank. This can help them to get a credit card with a small balance. If you can’t get a regular credit card, an unsecured line of credit might be the best option. This product can use the funds from your bank account as collateral to help you establish a credit history.
- Financing a small purchase is another good way to get started with personal credit. Often around the holidays, stores will allow you to buy an item on credit with no interest for up to 90 days. Paying one of these loans off on time will help you begin establishing your personal credit. Make sure to read the fine print so you understand the kind of arrangement you’re getting into.
Finally, if you’re just starting out and trying to establish personal credit, and in-store credit card is a good way to move forward. These generally have small credit limits and are a good way to establish a personal credit history. Make sure you set aside enough money to pay for the purchase when it arrives.