So it has come to a point in your life that you would like to start building your credit, but you are not sure how to do it. At this point, you have no negative history nor any positive history to go on, so in essence, your credit history is just a blank slate, ready for you to begin your journey to good credit. But how exactly do you go about building credit when you have none?
Open A Bank Account
One of the first things to do, if you do not have a bank account, and you are new and starting out, is to open up a bank account. It can be a checking or savings account, or even both. Many credit unions offer customers very beneficial tools for rebuilding credit. This information is not included on a credit report, however most lenders will request this information from your financial institution. Most lenders like to see that you have a couple of years behind you of handling your own money. It also shows them that you have a steady income. What will appear on your credit report is if overdraft on your bank account, and it is in the negative for awhile. Most banks offer free checking accounts with no or low annual fees.
Stay tuned for Part 2
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