Using Local Merchants to Help Get Good Marks on Your Credit Report

One of many ways to repair your credit is to approach a local merchant (such as an electronics or furniture store) and arrange to purchase an item on credit. Many local stores will work with you in setting up a payment schedule, but be prepared to put down a deposit of up to 30% or to pay a high rate of interest.

Even if a local merchant won’t extend you credit, it may very well let you make a purchase on a layaway plan. When you purchase an item on layaway, the seller keeps the merchandise until you fully pay for it. Only then are you entitled to pick it up. One advantage of layaway is that you don’t pay interest. One disadvantage is that it may be months before you actually get the item.

Layaway purchases are not reported to credit bureaus. If you purchase an item on layaway and make all the payments on time, however, the store may be willing to issue you a store credit card or store credit privileges.

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