How to Establish Credit

A new car. A student loan. A mortgage. At one point or another, we all need to borrow. To determine whether or not you can qualify for credit, lenders look at your credit history. So how do you establish credit, particularly when you've never applied for a loan?

Here are some simple steps:

• Apply for a credit card. You may want to start with your Credit Union. You can also consider getting a department store credit card, which may be easier to qualify for. Metro Credit Union offers a secured credit card, which offers a credit limit that's secured by your savings account balance.
• Make payments on time. One of the best ways to show a lender you're qualified is to make your payments on time. This will go a long way in helping you build a higher credit score.

If for some reason, you get denied credit, you should obtain a copy of your credit report. And, if you find you've been denied because of information provided by a credit bureau, you can receive a free copy if you request it within 60 days of the denial.

The major credit bureaus include:

Equifax
1-800-525-6285
www.equifax.com

TransUnion
1-800-680-7289
www.transunion.com

Experian
1-888-EXPERIAN (397-3742)
www.experian.com