Your credit history indicates your trustworthiness to lenders, stores and even employers. Having no credit could be a major barrier for people wanting to get low interest rates or even getting approved for the credit. But for those of you who fear having outstanding debts of any kind, here are some ways you can achieve a good credit score:
Secured Credit Cards: Open a secured card. Essentially you are required to provide a cash deposit that could be as little as $200 in some banks which will serve as your credit limit. Then, just like a credit card, you have the ability to build payment history by making on time payments each month. Just be sure to check that this history reports to all credit bureaus.
Credit Builder Loans: it is important to add diversification to your credit profile, and an installment account provides for that. Credit builder loans work in the same way as a secured card, since you are required to provide the cash deposit and perform by making timely monthly payments that report to the credit bureau. You basically borrow money from yourself, but the benefit of this is that it adds to your credit mix, making your credit history more diverse which in turn will increase your credit score.
Tradelines: These are revolving credit lines that have been open for over a year, with perfect payment history and low balances on which you are added as an authorized user to the account. The benefit to these are that you save the hassle of maintaining such account, and that as soon as it is reported in your files, it will provide you with a score boost.
We work hard and strive to deliver great results with our clients’ credit and debt goals always in mind. That is what make us your ONE stop shop for all your credit and debt needs! Call us at 844-FIX-URCR or visit us at 6416 Gateway E.
*Individual results may vary. Please call for details and to discuss your own individual situation.