A strong credit score is essential for obtaining loans, opening new lines of credit, renting a house or apartment, and even landing jobs in certain industries. Strong credit can demonstrate healthy financial management and decision-making, especially after seeking debt help. Below, discover a few tips for establishing credit.

How to Establish Credit

1. Open a Credit Account

Future creditors will want to see that you have open, active lines of credit and that you make monthly, on-time payments on all of them. A credit card is the easiest and most effective way of meeting these two qualifications. If you have no credit or bad credit, open a joint card with someone who has a healthy, verifiable credit history. Or, ask a responsible cardholder to add you as an authorized user on one of their existing accounts. If both of these options are not feasible, open a secured credit card, which functions much like a bank account debit card. You can prepay a balance and then spend off of that balance.

2. Submit Monthly Payments on Time

With any credit card, always make at least the minimum required payment every month. Credit card overuse is one of the main reasons people seek debt help, so start regular payment habits early. The same goes for loans and routine bills. Submit your car and student loan payments, rent, and utility bills on time. You could also ask landlords and utility companies to start reporting your payment history to one of the major credit agencies. This will only strengthen your credit score, so long as you keep making on-time payments.

3. Monitor Your Credit Report

All consumers can obtain a free credit report through any of the three reporting agencies of Equifax, Experian, or TransUnion. Look at your reports every few months to monitor your progress as you build credit. Also, review past information on your credit report to ensure everything is correct. If the report is still showing outstanding balances that have been paid, you can dispute the error by opening a claim online through the reporting agency's website. If you've had less than stellar credit in the past, or you've had to file for bankruptcy, be patient when rebuilding credit. It takes time, and past actions will stay on a credit report for a number of years.

If you need to start over with your credit, a bankruptcy can be the first step.  Some consumers have an immediate benefit to their credit after filing bankruptcy and many more are in a better credit position within a year after filing.

If your finances have become unmanageable despite your attempts to build credit, seek debt help with Hurtt & Johnson, LLC. For over 40 years, they have been serving Dalton and all of Northwest Georgia. Their lawyers offer assistance in filing for Chapter 13 and Chapter 7 bankruptcy, defending against foreclosure, and representing clients in credit card lawsuits. Call (706) 226-5425 or visit them online to schedule a consultation.