1. APPLY FOR A SAVING ACCOUNT LOAN
If you’ve been at your job and residence for one year and have no negative reports with the credit bureaus, you may be eligible for a savings account loan. Here’s an example of how it works.
You apply for a one or two year $500 loan. If approved, the $500 loan proceeds are deposited in a savings account you own. A hold is placed on the funds, securing the loan until it is paid in full. You make the monthly payments on time, pay off the loan, establish credit and the $500 plus interest in your savings account
is now available for withdrawal.
2. GET A CO-BORROWER
A co-borrower is another way to obtain financing and establish credit. In this situation, you apply for a loan
with someone who already has established and good credit. As your co-borrower, they assume equal responsibility for the loan – vouching for your credibility and accepting the risk along with the bank.
3. APPLY FOR A CREDIT CARD
Credit cards are another option, but require extreme self-discipline. Interest rates are much higher for those without credit. If you chose this route, it will be important to pay the balance in full each month and on time to avoid high interest charges and fees. If you choose this route, consider setting a budget on how much you will charge each month.
- Pay all your bills on time.
- Don't open too many credit accounts at once.
- Check your credit reports annually.
- Learn Why Here
A Friendship State Bank loan officer would love to get to know you, discuss your situation and options as well as answer any questions. You can contact an loan officer near you