Establishing a good credit history in the us from scratch

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Establishing a good credit history in the us from scratch

Establishing a good credit history in the us from scratch

By
Add to Favorites:
The credit history of each and every individual is linked to the social security number.The credit history of an individual basically reveals certain facts with regard to availing loans/credit, making payments on time, delayed or missed payments, defaults on loan etc. Having no credit history or a bad credit history is detrimental to an individual's overall creditworthiness. Not only will the person be unable to avail a loan but it would be impossible to rent an apartment, find employment, get credit facilities or cards, phone, electricity etc. Blotches in one's credit history generally last for a period of seven years. Sometimes a credit card can be obtained in the U.S. only after having lived there for at least a period of six months. One might find credit card companies sending mail to a recipient but it is not necessary that the approvals have been made. An individual is expected to furnish all the necessary documents in order to avail the card. The creditworthiness of an individual should be determined only on the basis of repayment capacity, willingness to pay on time, etc. There should be no other discrimination to deny an individual credit. Even in case the credit facility is denied the lender must explain in detail the reason for the denial. One is entitled to one free credit report on each denial. One must open a savings or a checking account immediately. This is the first step and this could be followed by applying for a credit card. Bank accounts are signs of stability and lenders definitely go by that. One must ensure that checks don't bounce and always limit withdrawals and one must avoid overdraft at all costs. Although bank accounts are not part of credit history it is still important as the lenders could actually get a glimpse of how well the individual is able to manage the money. When there is no credit history, lenders will look at other factors such as he employment records. It is advisable to stick on to jobs for a certain period. Frequent job changes don't go down well with lenders. A steady job with a good salary is an added advantage. Long periods of unemployment could adversely affect the credit rating of an individual. Getting a store card is also beneficial. However, while applying for a credit card one must ensure that the card reports to the credit bureau. Otherwise it would be a waste to get that card as it would not serve the purpose of building a credit history. Always ensure that applications for too many cards are not sent at once. Whenever there is an application for a card, the report is sought from the credit bureau with regard to the credit history etc. There are entries known as "hard" entries as well as "soft" entries. The hard entries are made when the borrower applies for credit and the soft entries are made when the lender offers credit. So the more the number of hard entries the credit scores are likely to go down that much further.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading