How to Build Credit

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How to Build Credit

• No doubt, credit cards are a quick bridge to help
  us reach our financial goals. What if your
  current credit score is barely enough to help you
  qualify to get a credit card? What next? Build
  your credit. Although building credit sounds like
  an overwhelming and almost impossible task, it
  is not. Here is a step-by-step guide to help you
  build credit
• How to Build Credit with a Credit Card
• Apply for a loan to start a credit lending
  history
• The best way to build your credit is to start a
  credit lending history. Then, you can apply for a
  loan- it can be a student or personal loan. Once
  the loan gets approved, ensure you make
  repayments on time and excess the bare minimum
  amount if possible.
• Your repayments will be recorded and shared with
  credit agencies. Thus, ensure you make timely
  repayments to build a positive credit history.
• Sign up as an authorized user for a third-party
• If you are below 18 years, then the state
  considers you too young to register for a
  personal credit card. However, you can build
  your credit by acting as an authorized user for
  someone else.
• As an authorized user, you can make purchases
  using the card. It helps because the information
  on the card will also reflect on your credit
  report.
• Consider getting a secured credit card.
• A secured credit card makes it easy to make cash
  deposits to financial institutions. However, you
  need to begin by making deposits before using the
  card to make purchases.

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• A cosigner is responsible for the loan. That
  means, if you dont pay up, they will. You can
  use a
• cosigner to build your credit, but consider other
  options and leave it as a last resort.
• How to Build Credit without a Credit Card
• Building your credit does not apply to people
  with cards. Cards are not the only option. Here
  is insight on how you can build credit without a
  credit card
• Apply for a credit builder loan
• A credit builder loan is unique from other loans
  since, once granted the money is deposited in a
  secure account. Thus, compared to a normal loan,
  the money remains inaccessible.
• You will need to make fixed monthly payments
  until you clear the credit builder loan to access
  it. The primary purpose of the loan is to build
  your credit by making timely and regular
  payments. Your payments will be reported to
  credit agencies to boost your score.
• Dont fall back on your rent or utility payment.
• It is rare for landlords to involve credit
  bureaus in late rent payments. However,
  consistently paying your rent on time
  demonstrates your financial consistency and
  reliability.
• Besides, timely paying your utility bills will
  positively impact your credit. If possible, you
  can request your landlord to report your rent
  payments to credit agencies for a good rating.
• Building your credit can be challenging,
  especially if you have just transitioned to
  adulthood. Nonetheless, a credit builder loan is
  an ideal place to start. Remember always to make