How to Purchase to Build Credit

One way to build credit is to purchase items through a payment plan at a store. Many stores are willing to lend to people without established credit. Showing that you can make your payments on time at a store will make it easier to qualify for a credit card or a car loan in the future.

Instructions

1

Create a budget to determine how much you can afford to borrow each month. List your monthly expenses and your income and then determine how much you can free up to pay towards a debt each month. Do not rely on what the store says you can borrow, because if you default on even one payment you will not build your credit.

2

Find a store that offers a payment plan. You can find payment plans at most furniture, electronics and appliance stores. Many stores offer free interest for a year. If you qualify for that option, you should take advantage of it.

3

Choose an item in the store that you can pay off in a year with the monthly payment amount you can afford. This should be an item that you would consider purchasing anyway. Many stores have a minimum amount to finance an item, usually around $250 to $500.

4

Apply for the financing offer when you purchase the item. The salesperson will take you through the application process and you will be approved or denied in the store.

5

Make monthly payments so you can pay off the item in the amount of time that gives you free interest. If you make the minimum monthly payment amounts you will end up paying back interest and it will take you several years to pay off the item.