Best Way to Build Your Credit Rating

by | Credit Card Debt, Credit Issues

In today’s world, credit can be easily destroyed. If you are young and entering the adult world, you may not always understand how to maintain a great credit rating. Often, you do not qualify for a loan or credit card due to having no credit. Lapses in employment or unforeseen expenses often lead to defaults on loans or an inability to pay the balance on a credit card. Fortunately, your credit rating can be established or improved. Here are several methods that you can use to build your current credit rating

 

Financial Aid | Credit Repair | Credit Score | Credit Rating

 

Apply for a Secured Credit Card

If you are in the beginning stages of building your credit rating, you will need to start small. A secured credit card will help you do just that. A secured credit card is backed by a cash deposit up front. Generally, this means that your credit line will equal the deposit. Once the account is closed, you will receive your deposit back. Secured cards are meant to be a temporary solution. Once you build your credit rating, you will qualify for an unsecured card, which is closer to the traditional credit card you may be used to seeing.

For a list of the best secured credit cards for low or non-existent credit scores, click here.

 

Apply for a Credit-Builder Loan

This option is safer than other types of loans. Instead of facing the high interest rates of a pay-day loan, you can pay for the loan before the funds are released to you. If you take six months to pay off a small loan before receiving the money, then you will not be tempted to forgo payment, sending the loan into default. If you have a bank account, speak to your bank about a credit-builder loan. This is a great option for building your credit rating safely and responsibly.

 

Get a Co-Signer to Raise Credit Rating

If you have no credit or bad credit, you should look into getting a co-signer to apply for a credit card or loan. In cases where you may not qualify, a co-signer with good credit can help you receive a loan or credit card. In these cases, ensure that you are ready to make all payments in order to avoid a lapse in trust between you and the co-signer because they will be responsible for the full repayment if you cannot.

 

Become an Authorized User on Someone Else’s Credit Card

This operates similar to a co-signer. If you have a friend or family member that is willing to give you access to their credit card, you may build your credit rating while they are responsible for payment. This should be used with set conditions between you and the primary cardholder. The cardholder may want you to pay for your use of the card, which helps to build the responsibility necessary to maintain your credit in the future.

 

Develop Good Credit-Building Habits

Ultimately, you must develop good habits in order to maintain any credit rating that you build. Here a few tips to build and maintain a healthy credit score:

  1. Make all of your payments on time. You must ensure that all your bills, including utilities and rent, are made on time in order to avoid a negative credit rating.
  2. Keep your low credit utilization low. This means paying your balance on credit cards completely each month. If something happens and this is not an option, you should ensure that your remaining balance never exceeds 30% or your overall credit line.
  3. Minimize the number of open accounts you have. Part of your score depends on the age of current accounts. Opening a new account reduces the overall age of your accounts and lowers your credit score.
  4. Keep your accounts open for a long time to build up their maturity and your rating.
  5. Check your credit rating annually for errors and discrepancies. Many financial websites, including NerdWallet, Credit Karma, and freecreditreport.com, deliver free credit reports and score. Your bank or credit card company may also provide a free monthly report.

 

Building a good credit rating can be a tricky task. Fortunately, it is not an impossible feat. Whether you are beginning a credit history or rebuilding a damaged one, there are plenty of options for you. Remember to look up and research your options. Avoid overly high interest rates that may lead to further nonpayment and make sure you pay all your bills on time. Good credit can mean a financially stable future, home and car ownership, and even a worry-free retirement.

 

“Believe in The Power of 3”
The number 3 is the first number to which the meaning “All” was given. It is the number of the whole as it contains the beginning, a middle, and an end. When you raise the number 3 to a second power, it simply magnifies everything you already have and...
The World of Federal Grants
Welcome To The Wonderful World Of Federal Grants Federal Grants - If you are planning to go to college or university but know that you would never be able to afford it on your own, or with the help of your family for that matter, one of the first places...
Find The Best Section 8 Homes & Rentals
Find The Best Section 8 Homes & Rentals Are you feeling a little frustrated searching for Section 8 homes and rental property? Below is a list of multiple Section 8 housing resources. These are not in any particular order. These are just eight very good resources...
How The New Budget will Impact SNAP
How The New Budget will Impact SNAP  The Supplemental Nutrition Assistance Program (SNAP) assists lower-income families to purchase food in order to prevent hunger. The program also provides economic benefits to communities. The proposed budget for 2018...
Searching for Online and Freelance Employment
Searching for Online & Freelance Employment Many career fields and skills do not fall under traditional frameworks for employment. Writers, photographers, marketers, teachers and artists may be able to find work as online freelancers to continue improving their...
How To Get Involved with Affiliate Marketing or Direct Sales
How To Get Involved with Affiliate Marketing or Direct Sales Life can busy and complicated. With increased costs in childcare, one parent must often stay at home to watch the kids while the other parent works. Or, as someone begins their adulthood, they may need...
Finding Employment with Job Searches
Finding Employment with Job Searches Sometimes, life hits Americans hard. With ups and downs in the economy, it may be difficult to maintain consistent employment over a long period of time. Fortunately, there are options to help find a new job or career. In the...
Are Discount Stores Really A Bargain?
It seems like dollar stores and other various discount stores are becoming a common retailer in most areas. Can these discount stores really offer you a bargain or do they just sell poor quality items? In my opinion, there are plenty of great bargains to be found in...
Best and Worst Student Loan Services
Best and Worst Student Loan Services This is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot...
A VA Home Loan Can Help You Get Affordable Housing
 Ever since the housing market collapse, lenders have tightened the requirements to qualify for loans. If you don't have the required credit score or enough for a 20 percent down payment, it will be difficult to secure qualification for a conventional...
The Most Common Reasons for Debt
 High debt balances can create significant stress, negatively impact not only your future, but it can also impact your health. It can prevent you from enjoying the quality of life that you otherwise may enjoy without the burden of debt payments. While...
You Can Save Money on Your Monthly Bills By Reading These Tips
When you add up the total cost of your monthly utility bills, you may be astounded by how expensive utilities can be. This may be particularly true during peak usage months in the height of summer and in the dead of winter. You and your family...
Receiving $4000 in Home Rebates
 Are there any home improvements that you have been contemplating lately? Are you struggling to make ends meet already? Learn more about three Programs a that could help you and millions of homeowners qualify for a $4,000 rebate. These Are Very Tough...
How Do I Get FHA Refunds?
Although FHA refunds are for people who have FHA-insured mortgage loans, not everyone is entitled to a refund. Various factors are considered to determine who can receive a refund. FHA refunds are available for those who finance their homes within three...
4 Challenging Discussions (And How To Have Them)
It's not always easy to practice open and honest communication, especially with your family. Unfortunately, that lack of communication can have serious consequences. If you're having a hard time finding the courage to approach your family about an issue...
How to Save Money on Your Kids Dental Bills
Your family budget might not extend as far as it used to. Still, you want your children to have healthy teeth and inexpensive kids dental bills. Learn how to save money on your kids dental.  Like Clean Teeth? Try the Dollar Brush!   Courtesy of Fox News Health...
Accepting Failure | Achieve Success
Everybody has a setback every once in a while, but it doesn’t mean that there is anything wrong with you. In fact, accepting failure can be a great opportunity to learn your own limitations and boundaries, then push through them, and provide you with a...
History of St Patrick’s Day
 St. Patrick’s Day is celebrated annually on March 17, the anniversary of his death in the fifth century. The Irish have observed this day as a religious holiday for over 1,000 years. On St. Patrick’s Day, which falls during the Christian season of Lent,...
5 Strategies to Reduce Stress and Strengthen Family Relationships
 Stress is everywhere. You feel stressed at work and on your commute, and maybe even your home, the place that is supposed to be your sanctuary. When you arrive home from your job, you're met by bills that need to be paid, children that need to be fed and...
Getting The Most Out of Your Dental Insurance
If you have dental insurance, it is imperative to know how to get the best out of it. There are several things that you need to understand to maximize the cover for the betterment of your teeth. Your dentist is the most resourceful person to advise you on how to get...

The Premier Forex League

Subscribe

RSS ED News

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email to Receive New Assistance Updates

Due to the overwhelming response, please enter your name and email to ensure proper results.

Thank You! You will now receive the latest assistance updates!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest

Share This