When it comes to making any major financial purchases, chances are that the person you plan on purchasing from are going to ask you for your credit score and report. But what happens if this is your first time making a major purchase? What if you’ve just entered the working world? Well, there are many ways that you can build your credit in a healthy way!
Secured Credit Cards
We talked about this in Monday’s blog, getting a secured credit card is a surefire way to build your credit. The main difference between an unsecured and a secured card is that to get a secured card, you need a form of collateral, usually money within a savings account. The company will issue you a card that is only good for the amount that is in the bank, rather then extending you a line of credit on good faith.
Pay Your Bills On Time
If you have regular bills, like utility bills or a car bill, simply by paying these on time will allow you to build up your credit! Plus, future lenders will be able to see that you have made your payments faithfully without any trouble.
Consider a Store Card
Most department store today offer some form of credit card that is only good for use at their stores. It may be worth checking out this option. For example, if you buy your groceries at a big box store, you can purchase your groceries (items you need, where you’re less likely to overspend), charge it to the store card, and then pay it off when you get the bill. This way you are not maxing out the credit card, using it only to purchase groceries and paying it on time.
Find a Co-Signor
If you are looking to make a large financial purchase, but do not have the credit history to back it up, you can consider finding a co-signor. A co-signor is someone (usually family) whose name will appear on the contract, stating that if you are not able to pay, that they will make the payments.
There are many ways that you can build your credit, and here at 1 Stop Credit, we are here to