How to Build Credit

1. How to Build Credit No doubt, credit cards are a quick bridge to help us reach our financial goals. What if your current credit score is barely enough to help you qualify to get a credit card? What next? Build your credit. Although building credit sounds like an overwhelming and almost impossible task, it is not. Here is a step-by-step guide to help you build credit; How to Build Credit with a Credit Card •Apply for a loan to start a credit lending history The best way to build your credit is to start a credit lending history. Then, you can apply for a loan- it can be a student or personal loan. Once the loan gets approved, ensure you make repayments on time and excess the bare minimum amount if possible. Your repayments will be recorded and shared with credit agencies. Thus, ensure you make timely repayments to build a positive credit history. •Sign up as an authorized user for a third-party If you are below 18 years, then the state considers you too young to register for a personal credit card. However, you can build your credit by acting as an authorized user for someone else. As an authorized user, you can make purchases using the card. It helps because the information on the card will also reflect on your credit report. •Consider getting a secured credit card. A secured credit card makes it easy to make cash deposits to financial institutions. However, you need to begin by making deposits before using the card to make purchases. The bank records your bill payments each month and sends information on the same to credit agencies. Thus, if you keep up paying bills consistently, you will eventually build your credit and qualify to get a non-secured card. •Get a cosigner One way to get your loan request approved or easily get an unsecured credit card is by getting a cosigner. However, before getting one, you need to explain to them what it means.

2. A cosigner is responsible for the loan. That means, if you don’t pay up, they will. You can use a cosigner to build your credit, but consider other options and leave it as a last resort. How to Build Credit without a Credit Card Building your credit does not apply to people with cards. Cards are not the only option. Here is insight on how you can build credit without a credit card; •Apply for a credit builder loan A credit builder loan is unique from other loans since, once granted; the money is deposited in a secure account. Thus, compared to a normal loan, the money remains inaccessible. You will need to make fixed monthly payments until you clear the credit builder loan to access it. The primary purpose of the loan is to build your credit by making timely and regular payments. Your payments will be reported to credit agencies to boost your score. •Don’t fall back on your rent or utility payment. It is rare for landlords to involve credit bureaus in late rent payments. However, consistently paying your rent on time demonstrates your financial consistency and reliability. Besides, timely paying your utility bills will positively impact your credit. If possible, you can request your landlord to report your rent payments to credit agencies for a good rating. Building your credit can be challenging, especially if you have just transitioned to adulthood. Nonetheless, a credit builder loan is an ideal place to start. Remember always to make repayments on time. It is always recommended to consult a good credit restoration company to help you assess and build a good credit score, and restore a bad credit score. Visit http://tcccredit.com/ for more information.