It is very frustrating to know you need a loan, or need to make an investment in your business but when you go to your bank application is denied for lack of credit history. It is very important to understand that having no credit history is much better than having bad credit. The only thing we have to start doing is planning to begin establishing your credit immediately.
Myths
Some people believe that if you have a cell phone, or electricity or pay rent this affects your credit, and this is only partially true. If you make your payments on time and do not be late, this information will NOT be on your credit, only when your account is in delinquent status (usually after 90 days no pay) is that this will affect your credit. Your deposit account at the bank also has to do with your credit, but this will help you if you want to establish a credit with your bank.
Secured credit card
The easiest way to get credit is to open a secured credit card. To obtain this card you will have to deposit at the bank the same amount of the cash in a certificate of deposit or savings account as a guarantee if it fails to meet this obligation. The bank will give you the card with the same amount (say $ 500) with a competitive interest. This can use the card like any other, remember to make your payments on time and never leave a balance of more than 30% of your card. The money will be invested as a deposit will be returned after a few years and have accrued interest receivable.
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