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Do you want to finally take control of your finances and start building your credit? Don’t worry – it’s easier than you think! With a few clever tricks, tips, and strategies up your sleeve, you’ll soon find yourself on the road to financial independence. Read on for some unique ideas that will help get you there faster and with fewer bumps along the way. Get ready to become an expert in all things related to personal credit today!
Building your credit score is essential for achieving financial stability and security, but it’s not always clear where to start. Fortunately, there are several clever tips you can implement to improve your score and set yourself up for financial success.
1. Become an authorized user on a credit card
If someone adds you as an authorized user to their credit card account, you can benefit from their positive credit history. Make sure that the primary cardholder has an established credit history and a track record of making on-time payments. You can even agree to them holding onto the card and you just benefiting from their credit. This is a good one to bring up with immediate family members who have a positive credit history.
2. Use a rent reporting service
Your monthly rent payments can help build your credit if reported to the credit bureaus. Some rent-reporting services work with property managers to report rent payments on behalf of tenants while others work independently of the property by reporting payments showing in your bank account. By using these services, you can create a positive credit history even if you do not have a credit card or loan. Rent reporting can have dramatic increases in credit scores. See how to do this HERE.
3. Get credit for your paid bills
UltraFICO or Experian Boost are FREE services that add recurring bill payments, such as phone, utilities, or cable bills, into your credit score. Utilizing such services can positively impact on your credit and trustworthiness since the lenders can look at you as a trustworthy person. These are great ways for you to improve your credit score and build credit.
4. Open a secured credit card
If you have a very low credit score or no credit history, it may be difficult to obtain a standard credit card. This is where secured credit cards come in. A secured credit card, requires you to make a cash deposit that serves as collateral for your credit limit. Use your secured card regularly and make timely payments to establish a strong credit score. After a period of responsible usage, the issuer may refund your deposit and upgrade your account to an unsecured card. This type of arrangement allows you to build your credit and increase your score as you pay.
5. Get a credit builder loan
Like a secured credit card, this loan is specifically designed to help you build your credit. Instead of receiving the loan money upfront, the lender deposits the funds into a savings account, and you make payments towards the loan. Once the loan is paid off, you’ll receive the full amount plus interest.
6. Pay all your bills on time – Setup Automatic Payments
This is one of the more obvious tips. Paying bills on time build credit. Paying anything late has a very negative impact on your credit. In fact, paying one car payment or credit card bill late in a month stays on your credit for 7 years. It truly will haunt you for years to come. That’s why we recommend setting up automatic minimum monthly payments. Now you can always make another payment, but you will have at least met your minimum monthly obligation and you won’t be reported late.
