There are many ways we can build our credit. One of the easiest ways to build your credit, would be with credit cards. Using credit cards for your everyday purchases, is the best way to build credit.  In order to have good credit, use your cards regularly, on your small purchases. Then make sure to pay each month on time , and don’t use more than 10 to 30% of the total credit line you have.

The reason your are able to build your credit using your credit cards, is because credit card companies typically report the activity on your credit cards to the three credit bureaus. Experian, TransUnion, and Equifax. These bureaus use the information collected to calculate your credit score. Payment history will be about 35% of your score, while amount owed is 30% of your credit score.

To start building your credit this way, you first need to open a credit card account. This can be challenging depending on how your credit currently is. You can either apply for a regular credit card if you can get approved or you can become an Authorized user on someone else’s card first. If you are not able to do this, do not worry there are Still other ways to get a credit card.

One way is to apply for a secured credit card. These cards the same as a regular credit card, with the exception that they have a refundable security deposit. These type of cards can have higher than normal fees and may not offer good benefits as other cards do but are a good way to start your credit. Another would be student credit cards. These types of cards are great for students, the drawback is that they have very low credit limits. But the good things are, there fees are low and they normally have rewards attached to them.

Once you start building your credit with these cards or as an authorized user, it makes it easier for you to get approved for different types of unsecured credit cards.

Remember credit cards can help build your credit, but it can also hurt it, if your do not make your payments on time.

Best thing to do is the pay on time in order to build a solid payment history. Easy way to do this is to signup for autopay, that way you do not miss any payments. Then once you have extra money you can make addition payments as needed to bring your balance down. Remember it is always a good idea to pay you balance down so that we are not above 10% of your crease limit this will help build you credit.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!