The how to "Build or Rebuild your Credit"

Hello Everyone,
I contributed this earlier but did not know how to enter it as a contribution to be recalled. So, I am submitting it again the right way.
I thought that I should share this information with you since so many folks were talking about their credit status. I’m sharing my 12 plus years of experience as a Banker/ Branch Manager/ and Sale Team Leader (Regional Manager) of a major US banking. How do you build or rebuild your credit?
1) First you start slowly. If you were denied credit get a free copy of your credit reports from the 3 credit bureaus (Experian, Transamerica, and Equifax). If you were not denied credit you may have to pay for a copy of your report, about $20. I think that credit bureaus also offer you a free copy once a year. When you get the report a. scan it for errors, b. Look for credit you never had or errors in reporting by different creditors. You can contact the creditor to see if they would voluntarily correct the error or errors on your report. If they won’t make the correction voluntarily, then submit a complaint of the error to the concerned Credit Bureau. If you file a complaint with the credit bureau, then the creditor by law has to reply to you and the credit bureau within 60 days.

2) Your next step is to start small. Get a small amount of credit from whom ever you can get it from, e.g. department store, jewelry store, or appliance store. Now if you could get a student credit card or another major credit card get it. This just puts you a few steps ahead of the credit curve. When I say a small amount of credit, I mean $200 or more. Most stores will take a chance with you for a small amount. If you already have credit, then pay those as required to keep them current and eliminate the late payments. If you have old credit cards, then keep them open and active. Do not close old credit cards if you don’t need to close them, unless it’s an old store credit card. Major credit cards help your credit score unless you have too many and too much credit.

3) Once you have had the first credits for six months or more, get another type of credit with a larger limit. If you have to use a savings account or other asset to secure more credit, then do it and make payments for at least 6 months. Pay the credit off in six months if you can but don’t use the money securing the credit. Repeat this process over and over with increased amount to build your credit limit. Now if you get a major credit card (e.g. Master Card, Visa, American Express, Discover, Chase, Citi, etc.) keep that and wait on the company to increase your credit limit.

Please note that Real Estate credit works a little different, but you have to first establish or clean-up you basic credit history to get real estate credit.

Good luck building or rebuilding your credit.

Ty