Credit

Mr. Cottler owned a clothing store. When I was seventeen he asked me about my credit. I said, "I guess it's good because I don't owe anybody any money."

He said, "You are wrong. You have no credit until you owe somebody and pay them back. You have to prove to the world that you can be trusted to pay your bills. When I first came to Anaheim, I had no credit. I got my mother to sign for me, borrowed a small sum of money from the bank, and I paid the bank on time every month until the debt was paid. The bank started trusting me, loaned me greater sums each time I borrowed, and now the bank loans me large sums whenever I need it. I don't need to have anyone sign for me because I have proved that I pay back on time. Sometimes I pay off the note early. Now is a good time for you to start building your own credit. Buy a suit from me and pay me back so much a month. You will pay me a small interest but it will establish your credit. Then you will be able to go to the bank and do the same thing I did."

I bought the suit and paid for it within a year. Then I found a hundred dollar used car. The Bank of America insisted my mother co-sign the note. It took me a year to pay off the note and by then, the car was worn out. I asked the bank to loan me another hundred. At first the banker said my mother would have to sign the note. I argued and was given the money on my own name. Eventually I built up a credit line much higher than I needed.