Bigg Success
  • Personal Success
  • Professional Success
  • Business Success
  • Resources
    • Newsletter
    • Services
    • Blog
    • Podcast
    • Video
    • BIGG Store
    • BIGG Articles
    • BIGG Quotes
  • About
    • Contact
  • Menu Menu
Blog
BIGG Success Logo boxed

I Am a New College Graduate. How Do I Establish Credit?

May 30, 2008/in Personal Development /by George Krueger & Mary-Lynn Foster

Bigg Challenge
Leah just graduated from college. She has applied for several credit cards and been turned down because she doesn’t have any credit history. She says she’s never borrowed before or even had a credit card. Her bigg challenge: How can she establish credit?

Bigg Advice
Great question, Leah! Here are 3 tips to get started:

http://media.libsyn.com/media/biggsuccess/00144-052908.mp3

Subscribe: Google Podcasts | Spotify | Pandora | iHeartRadio | Stitcher | TuneIn | Deezer | RSS | Subscribe in iTunes, Stitcher and more.


#1 – Get a bank loan.
This will cost you a little but it will be worth it so you’ll have access to money when you need it. Here’s a way to definitely get a loan:

Deposit $1,000 into an account (e.g. a Certificate of Deposit, commonly known as a CD) for a fixed period of time (e,g. 3 months). Ask that same bank for a $1,000 loan to be paid back at the end of the three months. They may require you to pay the interest monthly, or they may not.

Your loan is 100% secured by the CD, so the only risk the bank has is that you won’t pay the interest. You’ll earn interest on the CD, but not as much as you’ll pay on the loan, so you’ll be out-of-pocket a little bit of money.

But you’re establishing credit. At the end of the three months, pay back the $1,000. Now, up the ante. Do the same thing all over again with say $2,000. Then again … each time increasing the amount. Over the course of the year, you may do this four times.

Keep the amount relatively small because you don’t want to needlessly pay interest. You’re establishing that you can pay back a loan of $1,000, $2,000 or whatever the highest amount is that you borrow. Just make sure you make every payment on time.

#2 – Have a savings account, not just a checking account.
You’ll look more favorable to certain companies if you also have a savings account. Don’t think you have to stuff it full of money. It just seems to make a difference that you actually have one.

#3 – Keep a landline phone number.
Some companies seem to feel that this demonstrates stability. They reward you for it by extending credit. So at least while you’re trying to establish credit, maintain a landline phone number.

Thanks, Leah for sending us your bigg challenge.

Our bigg quote today comes from Benjamin Franklin:

“Remember that credit is money.”

So establish your credit and score!

Next time, we’ll discuss why work life balance doesn’t work. Until then, here’s to your bigg success!

 

Related posts 

692] 

(Image by woodsy)

Tags: accountant, Balance, bank loan, banks, certificate of deposit, Challenge, checking account, credit card, credit history, earnings, establishing credit, landline phone, Money, risk, savings, security, time, tips
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Reddit
  • Share by Mail
https://biggsuccess.com/wp-content/uploads/2020/07/bigg-success_stacked-1080.png 1080 1080 George Krueger & Mary-Lynn Foster https://biggsuccess.com/wp-content/uploads/2015/07/BIGG-Success-Nurturing-Your-Inner-Entreprener.jpg George Krueger & Mary-Lynn Foster2008-05-30 00:30:412015-06-14 14:56:38I Am a New College Graduate. How Do I Establish Credit?
You might also like
BIGG Success Logo boxed My Employer is Eliminating 401(k) Matches
5 Financial Resolutions blog image 5 Financial Resolutions for 2019
BIGG Success Logo boxed Stretch Yourself Anew
BIGG Success Logo boxed 3 Tips for Buying Health Insurance
BIGG Success Logo boxed Step 1-Find Abundance in a World of Scarcity
BIGG Success Logo boxed Lessons Learned From A Bankrupt Business Owner
Find Your Focus banner sidebar

About George & Mary-Lynn

George and Mary-Lynn

George is a serial business owner who also teaches entrepreneurship at the University of Illinois. Read more.

Mary-Lynn is a veteran radio show host turned entrepreneur. She is also a
renowned voice-over talent and audio producer. Read more.

Subscribe to our podcast

Apple PodcastsGoogle PodcastsSpotifyPandoraStitcherTuneInRSSMore Subscribe Options

Missinglettr

Search BIGG Success

  • About
  • Newsletter
  • Services
  • Podcast
  • Blog
  • Financial Freedom Tool
  • Freedom Tool Login
  • Contact Us

What should I do with my life?

We respect your email privacy

© Copyright - BIGG Success
  • Privacy Policy
  • Terms of Service
5 Marketing Strategies to Get the Most Bang for Your Buck During a Recessio... BIGG Success Logo boxed BIGG Success Logo boxed Why Work Life Balance Doesn’t Work
Scroll to top

This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.

OKLearn more

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refuseing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

The following cookies are also needed - You can choose if you want to allow them:

Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Privacy Policy
Accept settingsHide notification only
Open Message Bar