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By Amie Cleghorn
"I'm sorry, you just don't have
enough credit." Have you heard this before? Been turned down
for a new home or car because you had too little credit? If you're
like many Americans, odds are you have. More and more Americans
are turning from credit purchases for small items in an attempt
to "clean up" their credit files. In general, this is
a good thing. However, there are circumstances when you actually
need to have credit; even slightly damaged credit can be better
than no credit at all.
"How can I establish
credit if everyone denies me because I don't have
enough credit?" You may be asking yourself that question,
or have asked
it in the past. Establishing credit is a simple and easy process.
Many
companies will work with you to help you build your credit file.
Follow
these quick steps to establish and build credit.
Step 1. Collect payment
history statements and letters of good standing.
Everyone has creditors, even if you pay cash for all your purchases.
Creditors are any agency or company to whom you owe a regular
payment. These include rental agencies, telephone
companies (residential and
cellular), pager services, utility companies (electric, gas,
water, etc.),
even automobile insurance agencies.
Simply call or write the
agencies and ask for a payment history ranging
from 3-12 months, as well as a letter of good standing. Contact
any agency you pay on a weekly, monthly, quarterly or yearly
basis.
Step 2. Submit payment
history and letters of good standing. Gather the payment histories
and letters and take them to the
local branch
of the credit bureau, or mail them to one of the three major
credit
reporting agencies. Include a letter explaining that you would
like the
items to be added to your credit report.
Equifax Credit Information Services, Inc.
PO Box 740241
Atlanta, GA 30374
1-800-685-1111
www.equifax.com
TransUnion
PO Box 2000
Chester, PA 19022
1-800-888-4213
www.transunion.com
Experian
PO Box 2104
Allen, TX 75013
1-888-567-8688
www.experian.com
Many companies will help
you obtain the payment histories and letters of
good standing. Often, they will even assist in submitting them
to the
correct agency.
Items submitted to credit
agencies should appear on your credit report
within 30 days. In some cases, the additions may not appear for
90
days. If sufficient time passes without any response, follow
up with the
agency to find out if there is any other information needed to
process your
request.
Amie Cleghorn is a married
mother of two and Home Mortgage Loan Originator. cleghorns@planttel.net
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