Building A Credit Score From Nothing
While many people are looking for help fixing their credit there are also those out there looking to build credit from nothing. If you have no credit or very little credit history, how do you get started building it up?
When you are looking to take out a loan or get a mortgage your credit history will play a big part in if you are approved and what your interest rate will be. If you have bad credit you will have some trouble but you will also have trouble if you have no credit at all.
Everyone starts off with no credit and builds it up over the years. Many people get started a little late and are faced with a dilemma when they want to make a big purchase and are stuck because of their lack of credit.
The good news is that building up your credit is much easier than trying to overcome bad credit and loads of debt.
So how do you get started building up your credit without putting yourself in debt?
Start With A Credit Card
An easy way to build some credit is to get your first credit card. Because of your lack of credit history you will have to get one with a low credit allowance, which should be fine since you have been living life without using any credit.
Once you have the card use it every month on small purchases and pay it off entirely on-time. This usage will ensure that you don’t end up paying interest but will get credit for the cood credit behavior you are showing with having a low balance and making on-time payments.
Become An Authorized User
If you are young or don’t want to get your own card, become an authorized user on a credit card held by someone you know and trust financially. This will allow you to build up your credit without having to apply for anything yourself.
Open A Secured Credit Card
If you don’t like having a typical credit card you can open a secured credit card with your bank. A secured card allows you to add money to your card and then use it as a credit card or it is connected to your bank account and uses that balance as collateral. These cards are great because you can’t charge more than you have!
Fixing your credit can be as simple as making a call! We're here to help you rebuild and understand your credit. Give us a call to get started or learn more about what we can do for you 1-800-431-0449.