If you are trying to build your credit fast, but are at a standstill on how to do so, we’ve got some options for you. Whether you are looking into obtaining a home loan, auto loan, personal loan, or just join 700+ club, following through with these steps can help guide you where you need to be.
So what do the credit bureaus need to see to give you a credit score?
The first thing is you need to have one account that has been open for 6 months with at least 1-2 payments on that account. Remember, positive payment history accounts for 35% of your entire score!
These simple options below can be used for those who either have no credit history, or are rebuilding from low or negative accounts/scores.
1.) Authorized User Account
Having a friend or family member add you as a authorized user on their credit account allowing you to adopt their entire credit history from that specific account. This does not mean you will have access to spend on their account, unless they authorize you to do so.
Keep in mind, it is important that the person adding you on to their account stays up to date on their credit card payments, or else you will adopt the negative information as well.
2.) Secured Loan
Obtain a secured loan through Selflender. You start by making your deposit, and continue making payments each month. It works much like a savings account, as the payments you make go to yourself, and helps build positive credit history at the same time. Self Lender allows you to choose a repayment plan that suits your budget, and reports to the 3 major bureaus (Equifax, Experian, TransUnion).
3.) Secured Credit Cards
Secured credit cards are a great way to start building credit, and eventually transition to an unsecured account (depending on the issuer). Unlike debit and prepaid cards, secured credit cards are actual credit cards, giving you the opportunity to build or rebuild credit . You make a deposit with the credit card company, lets say $300, and that will be your set credit limit. As long as you make timely payments each month, the credit card company will report positive account information to the bureaus.
Keeping up to date on your account will increase your score, and eventually (typically 12 months of positive payment history) the account will become an unsecured card with a higher credit limit without a deposit.
Building Credit isn’t a complicated process if you know what you’re doing.
So if you have a 0 credit score or bad credit and you’re looking to build your credit score and establish a better payment history following these simple steps can help you can take you from a 0 to a 700 credit score in just 6 months!
Need help with your credit? Visit our website: http://CreditCEO.com
