Friday, March 24, 2017

Build Credit

March 4, 2011 by  
Filed under Build Credit

  Th ere is only one way to build credit, and that is by having open credit accounts that are in good standing.   Of course, you must repair any bad accounts you may have.  Over the years I have talked to numbers of people who have tried to do credit repair by paying off old debts and in the process their credit score when down.  In order to build credit and increase your FICO score you must have open credit accounts that are being paid on time. One of the fastest ways to build credit and get your credit score up fast is with a credit card. 

One might ask how can I get a credit card and build credit without credit?  By using a secured credit card that reports to all three credit bureaus is the answer.  With a secured credit card there is a deposit that must be made, usually around $250.  You would then use the card like a regular credit card and as you make your monthly payments on time the credit card company reports your credit activity.

To build credit using a secured credit card can be very helpful, however, you must be very careful to pay on time.  I suggest that folks only use the credit card once each month to purchase gas or groceries.  Then put the cash that would have been used to buy the items aside and when the credit card bill comes, pay all but a few dollars off.  There will be a little interest each month but when you carry a balance and pay on time each month your credit score will build faster.  NEVER charge or carry a balance of 50% or more month to month on your secured credit card, or any credit card, as this will cause your credit to drop very quickly.

Again, a secured credit card is a great tool to help you build credit.  When you apply for your secured credit make sure you read all the fine print and requirements as some cards have unreasonable fees. Check usage fees and yearly fees before you apply, but remember you are looking for a tool to help build credit fast and the right card is worth it's weight in gold when used responsibly.

See below for a list of credit cards that may work for you.

 

 

 

 

 

 

 

Arthur of this report receives affilliate commissions from Credit.com

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