Ways to Get Credit

Credit scores can affect every aspect of your life, from where you live to the job you do. The three-digit credit score held by the three main credit bureaus must be kept above 700 for a person to get credit from various companies. Here are a few ideas of how to get credit and keep your credit score healthy.

Credit Scores

Credit scores are calculated and held by the three credit bureaus: Equifax, Experian and Trans Union. Credit scores run from 300 to 850. A score below 700 gives the consumer a slim chance of being accepted for loans and credit cards.

There are two easy ways of keeping a credit score healthy. The first is to make sure all utility bills are paid on time. The second is to keep the use of available credit lines to a maximum of 30 percent of the available balance; for the best credit score, keep the use of credit down to 10 percent.

Credit-card companies are more likely to take a risk on an unsecured credit card with a consumer while they are a college student; companies are willing to take the risk because they believe family members are more likely to help out if the consumer runs up high debts on the card. Taking the time to find a card with the smallest possible annual fee and low interest rates will pay off in the long run.

Credit Cards

An easy option to get credit is to use another person's credit history by finding a co-signatory for a loan or being added to an existing account with a credit-card company. Finding a family member to take the risk of adding a consumer to a credit-card account will transfer some of the account holder's credit history to a consumer's credit report, which will hopefully raise the credit score.

Companies and stores that offer credit via store cards work a little differently; they usually lend money through a finance company rather than through a bank. These cards do not help a credit score as much as bank credit cards, but they are easier to get and help build credit in the long run.

If a low score makes it difficult for a consumer to get credit, a secured credit card is a good option. These cards require the consumer to deposit money with the lender, giving the consumer a credit limit usually the same as the money deposited. It is possible to find a secured card that reverts to a regular unsecured credit card after 12 to 18 months of on-time payments.

Banks and Loans

Credit companies see checking and savings accounts with banks and credit unions as a sign of stability. Opening a bank account at the youngest age possible is one of the simplest steps to creating a stable financial future and start building a financial history. Once a history of regular payments with a credit card has been established over 12 to 18 months, a consumer can apply for a small installment loan with a bank or credit union. Securing a small personal or auto loan is a good way of getting credit and building a better credit score. Mixing different types of credit from cards, banks and installment loans is the best way of increasing a credit score and in the future making it easier to get credit.