How can I obtain credit to purchase property/car
I am an unemployed young adult who have recently received a substantial amount of money. I don't have much credit and would like to purchase property. I would like to know how can I build my credit for financing? I have considered purchasing the property in full and financing a car for future credit opportunities. Please advise me on how to responsibly move forward.
Terry Says
OK, the first thing is to realize that this "substantial amount of money" is likely a one-time thing. You need to be very careful what you do with this money. Your "friends and family" -- if they know about it -- will have plenty of ideas for you! My advice: put it in an insured money market deposit account in a bank. Let it sit there without touching it. That will take self-discipline. Next thing to realize is that now you have "breathing room" to look for a good job. That is the most important thing you can do to develop good credit. You need a record of employment. You need to do that before you consider buying property. But if a car will help you get to your job, then you can use some of the money to buy a good used car for cash. You won't get credit at any reasonable rate because you don't have a job! Now you need one -- just one -- credit card. Read the article at this link, describing "secured cards." They are standard Visa or MasterCard credit cards -- but your "line of credit" is the amount you deposit at the issuing bank. Start with a $1,000 deposit. Charge a small amount every month -- and then be sure TO REPAY IN FULL and ON TIME every single month. Pretty soon you will have a good credit report. You can check it at www.annualcreditreport.com. I'm so glad you wrote to me. Now, please do listen to me. This is truly an opportunity of a lifetime for you to gain financial independence. This is not about what you DO with the money -- but about what the money will let YOU do with your life!! So leave it in the bank, where you can't lose a penny-- and start planning a better future. And please do write back in a few months, and let me know how you're doing.
