How To Obtain Good Credit

Written by: Rudy Freeman - on July 28th, 2006

To have a good credit, first you have to establish a credit history for yourself. This means that you need to have a "credit file" at the 3 Consumer Credit Reporting Agencies. This credit file is automatically created when your lenders report your credit information to the Credit Bureaus. Therefore, you need a loan or some credit line in order to have a credit file.

The first loan or credit card is always difficult to obtain since you don't have any credit history. Lenders such as banks or credit card companies are not likely to give an "unsecured" (see FAQ) credit line. Therefore, you may consider applying for a "secured" credit line. Most banks will approve a secured line of credit with your savings account as a pledge. For example, a bank asks you to deposit $300 to a savings account (certain rules may be applied to this account, such as the inability to withdraw money from the account), and will issue a credit card to you with a credit limit of $300. The reason is that if you fail to pay your credit card balance, the bank may close your accounts and apply the money from your savings to the credit balance you owe.

eBay Profits 2007

Not so successful on eBay? All you need are these top secrets! CLICK HERE

Help Desk Software

Feature-rich software that runs your complete support desk CLICK HERE

Open a secured credit line is the most affordable way to establish your credit. Most banks or credit companies don't charge application fees, which may amount to hundreds of dollars. Obtaining a secured credit line is relatively easy. However, it doesn't mean that opening a savings account will automatically bring you credit approvals. Your applications are still subject to approval and in some cases, rejected by the credit providers. What if your applications are rejected? Of course you may want to keep trying. There are plenty of credit providers out there that want the opportunity to do business with you. However, you should keep in mind that the dates and number of times you unsuccessfully apply for a credit line or loans will remain in your credit history. And they may also have a negative effect on your future applications.

Make A Living With AdSense

Earn insane income from Google AdSense with THOUSANDS of fresh, unique content-rich webpages from highly-targeted keyword lists of your choice. CLICK HERE

Set-n-Forget Trading System

Earn thousands with the most revolutionary trading system to ever hit the market, in less than fifteen minutes a day CLICK HERE

Is there a guaranteed way to get credit approvals at the first time? The answer is "Yes." There are several credit card companies that offer guaranteed approval with a high fee to make up the risks. However, you should be aware of the cost associated with using the cards. You should read the card agreement very carefully before deciding to apply. It may cost you hundreds of dollars in fees. There are also other less popular credit companies that offer a line of credit (or partial credit) for you just to buy their products. These companies typically require you to pay an advance fee, which will be credited to your account when you first order their products within a time frame. The cost for such fees is typically from $100-$200.