5 Steps To Build Your Credit Profile!
Credit bureaus are very difficult to understand sometimes.
They can be very tricky, and sometimes they just don't make since.
Building your credit profile is not always an easy task, but here are five ways to start building your credit.
1.
Co-Signer - If you are fortunate enough to have someone co-sign for you then this is a great way to start your credit profile.
2.
Secured Loan - What I mean by this is, you set up a savings account and make a deposit of $1000.
00 (for example), and then you take a loan out for the same amount of $1000.
00 and secure that loan with your savings account.
Usually you will have to do this through a smaller hometown bank, if you can't get one of the bigger banks to do it for you.
3.
Secured Credit Card - Works the same way as a secured loan, but it is with a credit card account instead of a loan.
I would recommend doing the secured loan if you can, because a loan is usually better than a credit card for your credit scores, but this is a good option if you can't do the secured loan for any reason.
4.
Additional Applicant or Authorized User - You can have a parent or someone you are close to put you on a loan such as a car note, mortgage, or personal loan as an additional applicant, but be sure that they are paying the loan timely or it will hurt your credit.
As a last resort they could add you to a credit card account as an authorized user which in most cases it will show up on your credit.
5.
Large Amount of Money Down - If you are fortunate enough to have a lot of money to put down on a loan you can in most cases get a loan, especially if you are putting half of the loan amount down or more.
If you have a problem getting a bigger bank to do the loan then go to a smaller hometown bank.
Once you have built your credit profile to the point that you can obtain unsecured loans by yourself it is very important to continue to build and protect it.
It is easy to destroy your credit, and it can happen extremely fast, but repairing your credit can be difficult and very time consuming.
Maintaining your credit is an endless job, but it is a lot easier to do the steps to maintain it than it is to repair it.
Having good credit is essential to having the good things in life that you will want.
They can be very tricky, and sometimes they just don't make since.
Building your credit profile is not always an easy task, but here are five ways to start building your credit.
1.
Co-Signer - If you are fortunate enough to have someone co-sign for you then this is a great way to start your credit profile.
2.
Secured Loan - What I mean by this is, you set up a savings account and make a deposit of $1000.
00 (for example), and then you take a loan out for the same amount of $1000.
00 and secure that loan with your savings account.
Usually you will have to do this through a smaller hometown bank, if you can't get one of the bigger banks to do it for you.
3.
Secured Credit Card - Works the same way as a secured loan, but it is with a credit card account instead of a loan.
I would recommend doing the secured loan if you can, because a loan is usually better than a credit card for your credit scores, but this is a good option if you can't do the secured loan for any reason.
4.
Additional Applicant or Authorized User - You can have a parent or someone you are close to put you on a loan such as a car note, mortgage, or personal loan as an additional applicant, but be sure that they are paying the loan timely or it will hurt your credit.
As a last resort they could add you to a credit card account as an authorized user which in most cases it will show up on your credit.
5.
Large Amount of Money Down - If you are fortunate enough to have a lot of money to put down on a loan you can in most cases get a loan, especially if you are putting half of the loan amount down or more.
If you have a problem getting a bigger bank to do the loan then go to a smaller hometown bank.
Once you have built your credit profile to the point that you can obtain unsecured loans by yourself it is very important to continue to build and protect it.
It is easy to destroy your credit, and it can happen extremely fast, but repairing your credit can be difficult and very time consuming.
Maintaining your credit is an endless job, but it is a lot easier to do the steps to maintain it than it is to repair it.
Having good credit is essential to having the good things in life that you will want.
Source...