Building Credit the Stable Way

This week, I’ll be helping The Boyfriend move (kinda rounds out the summer of moving, doesn’t it?). In order to help bridge the gap while I’m packing boxes and dodging traffic in a moving truck, Dale Yelich has kindly stepped in with a guest post for PTY. Dale Yelich is a member of Debt Management Talk – a debt management forum that shares its revenue with their members.

A lot of younger people wonder how to build credit when they have none to start with. There are a lot of pre-approved and ?zero credit? credit card scams out there, that need to be avoided at all costs. Many people have gone down those roads and have lived to regret it.

But there are several easy and safe ways to build credit, and here are some of the best.

Step Up
Have a checking and a savings account, and always keep money in both of them. What banks and lenders look for is stability, and to that end, a bank account that has a positive balance, is a good first step.

A steady job is an incredible tool for building credit. Working a fast food place part time, or a cashier, or a shelf stocker, all of these are as good as the next provided you stick with it and show, once again, stability in that job. A paycheck is a paycheck, no matter where it comes from, nor how many hours are on it, and that?s all that any credit institution wants to see.

Those are really the first two most important things to have going for you, and no, good looks and a great singing voice won’t do. The next step is taking the plunge.

Take the Plunge
The easiest people to get credit from are gas stations. Every one has their own dedicated credit card that you are only able to use buying gasoline or anything else they might sell in their store. These are close to being the perfect cards to get for first time card holders, and if you get one, they go a long way to building up a dynamite credit rating.

Generally, if you have a solid work record and a bank account, any gas station will send you a card. Just fill out an application, send it in, and see what happens.

These are the best cards to have for someone just beginning to build credit. You can?t spend all that much on one, so financially it will be hard to get into trouble, and just having to deal with the bill every month will give anyone the feel of what having a credit card is like, and if it is right for you.

If that first gas station credit card suits your fancy, charge on it for a good 6 months time, and keep the statements paid. Paying those statements on time is the key, and a minimum of 6 months will show, once again, how stable you are with employment and paying off financial statements.

Keep It Up
If this works for you, after 6 months, apply for a major card, MasterCard or Visa, and go from there. Always pay your statements on time, and never abuse this privilege that you worked so hard to get.