USING CREDIT WISELY

How do I establish credit?
You need a steady work record and continued residence at the same address. If you do not have a checking account, open one and be careful not to bounce checks.
You may apply for credit at a local department store or credit union. You might also consider a secured card, which requires you to deposit money as security for the charges you make on the card.

Where can I get a copy of my credit report?
You can get a copy of your credit report by contacting the three major credit reporting agencies, Equifax, Experian, and TransUnion.

Can you fix my credit report or clean it up?
No. If negative comments on your credit report are correct, they can remain in your file for up to seven years—except for bankruptcy, which can remain for up to 10 years.

If you believe there are errors in your credit report, you must notify the credit bureau in writing. The bureau will follow up your request with your creditor. If the creditor agrees with you, your report will be changed.

How to Establish Good Credit

It's not as tough to establish or rebuild credit as you may think. Here are some strategies:

• Open a checking account. Keep your checkbook balanced, and don't overdraw your account.
• Open a savings account. Make regular deposits and avoid taking money out of the account. To help you establish credit, some financial institutions will allow you to take out a small personal loan secured by your savings account.
• Join a credit union. These organizations often may be more willing to take your personal and financial situation into account when reviewing your application for a credit card or loan.
• Get good credit references. Even if you've never had a credit card or installment loan, you can demonstrate good standing by having a stable relationship with a bank or credit union, and a record of paying your rent and utility bills on time.
• Apply for a gasoline or department store credit card. When you use them, pay on time to develop a positive record with the credit bureaus.
• Get a cosigner. Sometimes you can begin to build good credit history by having someone agree to assume your responsibility for your loan or credit card if you aren't able to make payments.