How To Get Credit

If you are young and in college getting credit is fairly easy. There is probably someone on every campus trying to get college kids to sign up.

Credit can range from a credit card like Visa, or MasterCard. Or the various other types of credit cards. Establishing good credit is what is required to get the good interest rates from homes to automobiles. If you do not have any credit, one of the best things to do is to get a secured card. A secured card card is offered by most banks.  A secured card means that you make a deposit for a set amount, say $400.  And your credit limit for purchases will be $400.  Basically the deposit you make will become your credit limit. Each bank or credit union has their own rules so check online for yours to see if they offer that or head down to your local brick and mortar bank. 

If you can get a secured credit card or a regular credit card the best thing to do to build up your credit is to make small purchases only.  One of the best things that I did when I was younger was buy CD's with my credit card.  That small balance was easy to pay off every month.  Now, that doesn't mean you should go and buy a bunch of CD's.  I just purchased one or two a month and made sure I paid them off.  You need to make smart responsible credit decision, especially if you are young. You will need good credit throughout your life.

Another good place for credit is a department store like Macy's, Nordstroms, and the Ross.  Just about any department store has what they call a house card, meaning a department store card that you can use to purchase items.  When I shop at Target they always ask me would I like to save 10% and apply for a Target credit card.  I always say no, but that is how you can get credit also.

Research which companies offer the best credit deal for you.  Its not a good idea to apply to a bunch of credit companies.  Too many inquiries into your credit will ding your credit score and lower it.  My advice is to have one credit card, and if you can buy what you need with cash, then save up for it.  Do more with your money instead of paying extra interest on credit card bills.

Overtime you will build up your credit and most likely get a credit limit increase from your card company.  How to get credit is the easy part, being responsible with credit is the hard part