How to Establish Credit (1266)

To qualify for credit, you must show potential creditors that you are credit-worthy. Companies use various criteria to judge credit qualifications. Ability to repay debt and your past debt repayment history are primary considerations.

The following suggestions explain how to establish your own credit identity:

- Open and maintain a checking and savings account in your own name.

- Establish a work/employment history.

- Apply for a charge account at a local or national department store (e.g., Sears).

- Request any credit under your full legal name.

- Apply for an installment loan for consumer purchases.

- Apply at a local bank for a small loan.

- Apply for overdraft privileges on a checking account.

Acquiring credit creates financial obligations. Know how much debt you can afford, and be aware of the signs of credit abuse.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

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