Financial Fitness with Alan Akina - Start building credit

26 Nov 2013 · 1 min

Watch on YouTube

1:20

In this short financial segment, host Speaker A introduces the importance of a good credit rating for loan applications, then Alan Akina delivers five actionable strategies for individuals who are new to credit or looking to rebuild it after a downturn. The tips are: (1) approach your existing bank—if you have a checking or savings account, request a credit card even with a low available balance and without carrying a monthly balance; (2) consider a signature loan from a credit union, which often offers more flexibility than traditional banks; (3) obtain a secured credit card by depositing cash equal to the credit limit; (4) establish credit history by paying a cell‑phone bill consistently for at least six months; and (5) use a cosigner if possible to gain access to credit. Alan emphasizes that the single most important habit is making every payment on time. The segment closes with a brief thank‑you from the host.

A good credit rating goes a very long way when applying for a loan. In Watch Your Wallet Wednesday today, Alan Akina shows us how to build credit the right way.
Good morning, gang. If you're just starting out in your adult life or trying to rebuild your credit after the recession, here are 5 tips to help you to get in the game. Now first, start with your bank. If you have a checking or savings account with the bank, walk in there and ask for a credit card. Now, the available balance does not have to be that high to get started, and you do not have to carry a balance on a monthly basis to build credit. Try getting a signature loan at a credit union. Typically, credit unions are a little more flexible than traditional banks. If you can't qualify for a credit card, try to get a secured credit card. Now, you have to put up some cash in exchange for the same amount in availability on a credit card. Number 4, you can also establish credit by paying for a cell phone bill for at least 6 months. And number 5, get a cosigner. If someone is willing to help you to get started, this could be a great way. Now remember, the best thing to do is to make your payments on time each and every month. For Wake Up Today, I'm Alan Akina. See you next time.
All right, thank you very much, Alan.