What Is The Proper Way to Establish Personal Credit & Buy a Business Truck?
- 1). Get a free copy of your credit report. Although you are looking to establish credit, it won't hurt to check your current credit file. The file will be empty if you have no credit history, or you may be reestablishing your credit after some past problems. View and print your credit report from the Internet site Annual Credit Report (see Resources). The three major credit bureaus operate the site to provide free reports as required by federal law. You can also order your report by mail or telephone by following instructions on the site's homepage.
- 2). Address any old issues on your credit report, if applicable. Old debts such as charge-offs and collections must be paid off to reestablish credit. Contact the creditors or debt collectors for those items to resolve the issues. Wait about 60 days after making payments for your credit report to be updated.
- 3). Apply for new credit. Try first for an unsecured, full-featured credit card such as a MasterCard or Visa. If you are turned down, apply for a department store or gas station card, which are generally easier to get. Maintain a small balance on the cards to create a credit history and never miss a payment.
- 4). Apply at your bank or credit union for a secured credit card after several months. The secured cards require a deposit of at least $200-$300 in a savings account, with the money held as collateral. That makes approval for the card easy. Your credit line will equal the amount on deposit, and you'll receive a MasterCard or Visa. Keep a very small balance on the card and make timely payments.
- 5). Deposit more money into your savings account at the bank and use it as collateral for an installment loan. Also deposit the proceeds from the loan into your savings or checking and set up monthly payments to the installment loan. Allow your relationship with the bank to grow for several more months as you continue to make timely payments on all your accounts. After about a year, apply for a loan at your bank for a business truck.
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