To establish minor credit with your local bank you should save about $1,200 in your savings account, then convert $1,000 to a 6 month CD. Use the CD as collateral for a $1,000 secure loan (6 month loan). Never miss a payment, never pay it off early, and never make a late payment! Put the borrowed money into your savings account and use it to pay off the loan. With the interest earned in savings and on the CD this credit should cost you less than $70 in interest on your loan.

To establish major credit with a bank you should up it to $5,000.
Once you finish you will established credit with your local bank, and credit in general.

Get a credit card. You can get a secured credit card from Vision Premier Prepaid Visa ; use the $200 from your savings account to set up the card. Make sure you have an additional $200 to cover all fees charged the first month.

Use the card every month, and pay it off completely and on time monthly.
Add a second secured card as soon as you can by setting it up at Vision Premier.

Never be late on any credit card payment, and treat the cards as a service to help re-establish your credit, and not as an alternative form of money!

Department store cards can also be a great way to can your credit going, but be careful with these! You may be tempted by all of the great merchandise; many people have ruined their credit this way. The best thing to do is to only uses these cards for necessities, and always pay them off on time every month. Self control is the only way to build good credit on limited means.

Pay your utility and other bills on time every month for at least a year. When your almost ready to use your new credit for a new car or home sign up at www.eee.com and turn your good bill paying habits into usable credit.

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