It wasn't all that long ago that
American's faced great financial crisis. As a nation, we struggle
with debt, and it keeps us from achieving a better life. Debt
Education is here to help you change all that ... just ask!
REAL PEOPLE ... CARING ABOUT REAL
ISSUES
Establishing Credit:
• Use a personal savings account as collateral for an
installment loan. Prompt repayment of at least six months will
indicate responsibility.
• Make a larger down payment than required to indicate
an interest in a purchase or use collateral. Those with very
little credit or a questionable credit history might use a paid-off
car, land rental property, stocks, CDs or other savings as security
for a loan. Creditors are more willing to take a risk when the
consumer has a vested interest.
• Find a co-signer. A co-signer is someone who will guarantee
that the note will be paid if the borrower does not pay. The
co-signer must have a good credit history and qualify for the
loan as if he or she was the original applicant.
Caution: the borrower's payment history will be reflected on
both credit reports. Think long and hard before agreeing to
be a co-signer for any credit or loan application.
• Discuss with a major department store getting a credit
card with a minimal limit until payment history proves worthiness
of an increased limit.
• Have merchandise financed through a dealer or store
where there is collateral for the item.
• Avoid rental companies that advertise reestablishment
of credit by renting merchandise. It is not uncommon for the
required weekly payment to increase the cost of the merchandise
two or three times.
• Prepare to pay a higher interest rate. Financing vehicles
or other large-ticket items may require that the borrower pay
a much higher interest rate due to the increased risk to the
financing company.
• Have a checking and/or savings account. Many credit
applications request banking information. Lenders want to be
able to research the borrower's handling of daily finances.
• Apply for a secured credit card. Some banks offer major
credit cards using a savings account as collateral. They may
have a high interest rate or annual fee, so caution should be
used in carrying balances over from month-to-month.
• Consider payroll-deducted loans of automatic bank drafts.
While these methods of payment are not "security"
for a loan, credit unions and banks may be more willing to extend
credit if these methods are used. This is particularly true
if the borrower has a long employment history and a good pay
history on previous loans.
There's a lot of information to read through on
the Debt Education website, but we feel this is extremely important
material. We strongly recommend that you bookmark
this page right now. This will allow you to read
at your leisure, and should you need to attend to other matters,
easily return back here at your convenience.
The Debt Education website was built for you. Please explore
our website. You'll find resources and information on virtually
every aspect of financial planning and money management. These
debt delp resources are designed to help you get out of debt and
stay out of debt. You can achieve financial independence.
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Debt Education PO Box 5156, Santa Cruz, CA 95063
