I have no credit. How do I get started?
The fastest way to create a credit rating is to go on a 3-month layaway plan.
Let’s say you need to buy furniture for your apartment rental. You are going to shop around at The Brick, Dufresne, Countrywide or wherever. You select $1,500 to $3,000 worth of furniture. Remember, you are buying furniture for the living room, dining room and bedroom.
Ask the sales representative if you can put the purchase on a 3-month layaway plan. You make 3 equal installment payments and pay on time. They keep the furniture until the money is paid. They deliver when you make the last installment.
Voila, you have created an A-1 credit rating.
P.S. Do not purchase the 15 month no-payment plan because you are not creating credit. The reason for this type of promotion is that most people forget to pay the balance in full at the end of the grace period. If you miss this date and do not pay in full, the interest rate goes from 0% for the first 15 months to 28.8% per year.