One way to establish your credit profile by applying and securing a loan with a creditor that reports your activity to the credit bureaus. Be sure to create a personal budget that accounts for paying the balance due. Paying your creditors on time while avoiding going over one-third of your limit can help toward building a positive credit standing.
However, paying late will likely impact your credit score unfavorably. Over time, you may want to gradually increase the amount of credit you have and use to create a more robust credit report. Check your credit scores periodically to track your improvement.
Remember, before taking on new debt, make sure it’s the right thing to do for your situation by researching all your available options first.
About the Author
Solomon Poretsky has been a writer since 1996, with experience in the fields of financial services, real estate and technology. Poretsky holds a Bachelor of Arts in political science from Columbia University.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc. © 2013 ConsumerInfo.com, Inc. All rights reserved.