How do you establish credit?
Getting your first line of credit can sometimes be challenging. If you don’t have a credit history or if you
have filed for bankruptcy in the past, credit grantors may be reluctant to extend you credit.
You can establish credit in three ways:
1. Start small and build up. A local department store or bank is a good first step. Before you apply, ask
the credit grantor if it regularly reports your bill-paying history to a credit reporting company, which will
help you establish a history of responsible credit use.
2. Get a cosigner. You can ask a parent, a family member or a friend with an established history of good
credit to cosign a loan or credit card application for you. Make sure you pay as agreed, since you are
putting your cosigner’s good credit at risk.