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How to Build Credit Fast: A Step-by-Step Guide

Having good credit is an essential factor in being considered eligible for credit cards and loans. However, to build it, you need to have a reliable credit history. That makes it a Catch-22 situation for young adults and others who are starting and want to find the fastest way to build credit.

How do you build credit when you’ve never had a credit card or taken a loan? And how do you convince lenders to give you credit cards or extend loans when you don’t have a credit score?

Fortunately, though, you do have options to get around this conundrum. Moreover, you will even be able to build credit fast. Here is a step-by-step guide to help you:

Apply for a secured credit card

While many lenders will hesitate to give you an unsecured credit card if you don’t have a credit history, they won’t have a problem with offering you a secured credit card. In this type of credit card, you must make an upfront cash deposit that is equal to the credit amount limit. You can then use the card to make your purchases and pay off the balance every month.

The lender will report your payment history to the three credit bureaus—Experian, Equifax, and TransUnion—and it will impact your credit score. By staying below the credit card limit and making regular payments, you can increase your credit score and build good credit. You may even become eligible soon for a regular credit card.

Get a credit builder loan

You can get a credit builder loan from your local bank or credit union. After you apply for the loan and get approved, the financial institution will deposit the loan amount into a savings account for you. However, you can access the funds only after you have repaid the loan in installments over the next one or two years. Keep in mind that the whole point of such a loan is to offer you the fastest way to build credit. The three credit bureaus will make note of your regular loan payments and that will push up your credit score.

Keep your credit balance down

Paying your credit card bills on time is essential. However, instead of making a lump credit card payment once a month, consider making several small payments over the weeks. Pay right after you’ve used the card to make a purchase. These multiple payments will keep your credit utilization rate low, and that will work to your benefit when it comes to improving your credit score.

Ask the card issuer to raise your credit limit

By increasing your credit limit, while your balance remains the same, you can lower your credit utilization rate. Having a low credit utilization rate is crucial for obtaining a high credit score. However, remember to ask your credit card issuer if it will be possible to increase your limit without going through a hard credit inquiry. That might not be in your interest and might even end up lowering your credit score.

Become an authorized user on an existing credit card

The fastest way to build credit is to ask your family or friends to add you as an authorized user on their credit card. You don’t need to use their card, just be on it as an authorized user. Their credit history will then show up on your credit report and will be instrumental in boosting your credit score. Of course, that will only happen if they are fiscally responsible, stay well below their credit limit, and make their credit card payments on time. If they’re not, your credit score will take a nose dive along with theirs. So, only ask people you absolutely can trust.

Pay all your bills on time

While the FICO score doesn’t consider your rent and utility bills, other sources like the FICO Expansion Score and the Payment Reporting Builds Credit (PRBC) company do cover these payments. If you have been timely with paying your bills, it will increase your creditworthiness with lenders. Along with these steps, it will also help to review your credit report annually and make sure that it does not contain any errors that might damage your credit.

Adding Authorized Users to Your Credit Card

Ever thought about adding your child as an authorized user to your credit card? Or have you ever just wanted to help a friend or family member who is dealing with bad credit? Whatever your reasons may be, adding someone else to your credit card is a pretty easy and straightforward process. And the best part? You can even get paid to do it and it is totally legal.

Adding an authorized user to your account can help you make some extra cash – $400 to $2,000 plus per month, depending on your cards. The authorized user do not receive a credit card to use, it is simply a means to boost their credit score. A few things to consider:

• Quite simply, it’s a win-win for all parties involved. By adding an authorized user by selling your tradeline to a reputable tradeline company, this company will in turn pay you for your tradeline. The tradeline company already has people who are looking to become an authorized user by purchasing a tradeline. Once a person purchases a tradeline, they win because they’ll have the benefit of your credit history being placed on their credit report to boost their credit score, thereby increasing their chances of being approved for any type of loan or line of credit they apply for.

• Authorized users have certain account restrictions. Authorized users when added via a tradeline company are restricted from certain account activities. For example, authorized users don’t have access to your actual credit card and they won’t receive one either. As a result, they cannot carry out account maintenance activities like making purchases, adding other users, changing the contact information on the account, etc.

• Authorized user have no legal liability to the account. Authorized users are not legally responsible for any purchases charged to that account. In the case of a sold tradeline, you’ll still be the only person able to make a purchase anyway, so there’s nothing to worry about here.

• Authorized users do not need a credit history. The credit card company will not run a credit check on the authorized user when you add them to your credit card. This is why becoming an authorized user is a great option for people who have a bad credit history or no credit history at all.

Adding a New User to Your Credit Card

Now that you know all the basics about authorized users and what adding them to your credit card could mean for you, here are a few tips on how to add authorized users to your credit card.

• The first step to adding an authorized user to your credit card is gathering all the information. In the case where you are selling your tradeline and adding an authorized user, the tradeline company will provide you with all of the information you need to add an authorized user. You’ll be provided basic information such as the person’s name, their date of birth, their social security number and some other information depending on what your credit card company requires.

• The next step would to add the authorized user. For some credit cards, this can be quickly and easily done online if you have your account setup online. However, some other credit card companies might need you to call them. Whatever your credit card company requires, it usually is easy, meaning the process is fairly quick. In fact, if you can do it online, all you’ll have to do is log into your online account and search for the right menu option. The menu option usually says something like “authorized users” or “add another user”.

• Once you click on the link, the next step would be providing all the information of the user you want to add – the information the tradeline company provided you with. After doing that, click on the submit button.

If there was ever a way to do some good for someone else while also benefiting financially, adding an authorized user is by far the absolute best way to do it. Since the authorized user will not have any access whatsoever to a credit card, account information, or know who you are, in addition to the fact that you’ll continue using your credit card and making payments on time anyway; you may as well go ahead and get paid for it. It’s the fastest and easiest way to passively add several hundred dollars a month to thousands of dollars a month in income.

The great thing about this is that when you sell your tradeline for the purposes of adding an authorized user simply to help the other person boost their credit score, all of the hard work has been done for you. Once your tradeline has been purchased, you’ll receive either a phone call or an email providing you with the information you’ll need to add the authorized user to your credit card. That user has no access, but you’ll get paid by the tradeline company for adding that person as an authorized user.

How Can Tradelines Boost Your Credit Score?

Tradelines refer to credit accounts mentioned on credit reports. One example of a tradeline is your credit card; others are your bank loans such as for houses, vehicles, and others. If your credit score is low or you don’t have enough credit due to your age, you can utilize tradelines to boost the figures. One way to do so is to work with the best tradeline companies in your area.

Credit Score – the Highs and the Lows

To calculate a person’s credit score, several factors are taken into account by authorized agencies. These can be your payment history, debt, new credit, types of tradelines, length of credit history, etc. Essentially, through your credit score, creditors are assessing the risk of lending you the money.

Many times your credit score can be low even if your payment history is perfect. It can happen if you have opened new tradelines close to the timeline of applying for a loan. If you have recently started working, the length of your credit history will be short and it can affect your credit score. Whatever may be the reason for having a low credit score, you can boost it with tradelines.

Boosting Credit Score with Tradelines

In order for tradelines to improve your credit score, the account will need to be ideal for the purpose. For instance, if you are using a credit card as the tradeline to boost your credit score then the person owning it would need to have the perfect credit history related to that account.

Tradelines can increase credit score as the good credit from the account will reflect in your history. It will happen if you are declared as an authorized user to a credit card with a low balance, high limit, and no problems with its payment history. The good history of the tradeline then can reflect in your credit history as well and boost your score.

It is a perfectly legal way to boost your credit score. It is akin to a person adding the name of their children or spouse to their credit cards in order to give them a boost in terms of their credit score. Here, instead of using a family member’s or relative’s tradeline, you will purchase it via a credit repair company.

The nitty-gritty

You can purchase one or multiple tradelines as per your unique requirement. Before you buy tradelines, you can inquire about the credit limit available for that account. You should also check the duration of the credit history for the tradeline you wish to purchase. Some tradelines will be perfect for those just entering the workplace and starting to build their own credit history. Others might be ideal to rectify a problematic score.

To make the tradelines work for you, it is crucial that you deal with only authentic credit repair companies. The best tradeline companies will always maintain a proper website with correct details about their products. So, do your due research before purchasing tradelines from any company out there.

To find the best tradeline company in your area, conduct an online search for a list of names. Check the websites of a few companies on your search list.

Check if the details about their products are listed on the website for the benefit of their prospective clients. It is an important factor as you wouldn’t want to have any surprises along the way in terms of what is promised to you in a tradeline for what you have paid and what you receive in reality. It is best to choose a tradeline company that lists their offerings and relevant details for the same clearly on their website.Also, see if their office address and other contact details are present on their website or not. It is best to stay away from tradeline companies that do not display information about their business on their websites. You can also check the authenticity of a company by calling them directly and assess the kind of support they provide you. If they are courteous and responsive to your queries then it is always a good sign. If you find them suitable in other above-mentioned aspects as well then you might have found a good tradeline company for your needs.

Six Proven Methods to Increase Your Credit Score

To build a robust credit score, you need to implement good strategies in terms of your accounts, spending habits, and payments.

If your credit score is low, it can be difficult for you to get loans. Many employees do not even hire new people without getting a full report of their credit history. If it is less-than-ideal, it can become problematic for those looking for jobs. So, it is important to have a plan in place to boost your credit score and keep it at an optimal level.

Consider these six methods to increase your credit score.

Timely Payments

To boost your credit score, you need to be current with your loan payments. Timely payments account for a big chunk of your credit score. Often, credit bureaus accord it the most significance when determining your credit score. So, ensure that you do not miss your credit card and other loan installment payments.

Timely payment on your loans can be one of the quickest ways to increase credit score.

Tradeline Purchases

The quickest way to increase credit score is to purchase a tradeline or two from authentic credit repair companies.

Tradelines are accounts that show up on your credit reports. If you become an authorized user on a credit card with good payment history and balance then its history will also reflect on your credit reports. So, you will also begin to reap the benefits of the good credit history of your new tradeline.

Many people aim to become authorized users on a family member’s credit card provided the account is solid in terms of its credit history. But the problem with such arrangements is that if that person defaults on a payment or accrues bad credit on the account, it will reflect on your score as well. But if you purchase tradelines from genuine Miami credit repair companies then you can ensure that you won’t have to face such risks.

Low Credit Card Balances

It is important to maintain good balances on credit cards to have a good credit history. Such a habit will establish you as a responsible borrower. It is best to pay the credit card bills in full rather than continue to incur interest on the remaining amount after you pay the minimum amount due on your bills.

The lower your debt on the credit card, the better it is for your credit score. It is fine to not pay the full amount due on the bill every now and then. During emergencies, you might even need to skip on it. But ensure that it doesn’t become a regular thing. If you continue to keep low balances on your credit cards, in time your credit score will improve and will continue to increase with every billing cycle.

Active Accounts

Often, people tend to close their accounts after years of use if they don’t need it anymore. But if you have an account with a good credit history, closing it would mean losing out on a good chunk of robust numbers on your credit score.

Close your accounts that accrue a fee after some time once you have other accounts active. But if you can afford to keep even secured accounts active and open for a long time, it can go a long way to boost your credit score. It is best to not close your free accounts at all if you have been using them for a long time or if they have a good credit history.

Multiple Accounts

To increase your credit score, it is important to not rely on one account only. It is best to maintain a mix of different accounts in order to build a solid credit history.

Making timely payments on more than one account is better to establish your credibility as a borrower than just one.

New Account Openings with Intervals

Yes, multiple accounts can help to increase your credit score. But opening them all within a short span of time can hurt your case.

The reason for it is that every new type of credit inquiry diminishes your credit score. So, it is best to spread out applying for different types of loans by six months at least.

Increase Credit Score – Four Easy and Quick Tips to Raise Your Credit Score

A numeric value that enables creditors to evaluate a person’s credit worthiness is referred to as a credit score.

If a person’s credit score is low, then it can affect their overall life. They won’t be able to borrow money to pay for important things in life such a house, an automobile, or other loans for health or academic reasons. Having a low credit score can also make it difficult to obtain new credit cards or open bank accounts. For these reasons, it is crucial to ensure that your credit score is in the higher ranges. But if isn’t (at the moment), you can take steps to improve it.

Here are four steps you can take to increase your credit score.

Make Timely Payments

One of the quickest way to increase credit score is to start making timely payments. Late payment history can negatively impact a person’s credit score, and you cannot make it disappear until some years have passed. Late payments show up on the credit history seven years down the line even if you close a problematic account. The best way to get your payment history on track is to start paying all your bills on time.

The idea is to showcase to creditors that you are a responsible borrower who will pay the dues on time.

Pay off your Debts

Be prompt with your debt payments. It can be tempting to transfer old debts to new accounts to buy some time. But such a practice can lower your credit score. Instead, clear all your dues as soon as you can and try to not be late in this regard again.

Some collection agencies also agree to delete late payment history upon requests. So, it can be a good idea to ask them if this is a possibility with them. You can ask them to give you in writing the agreement for removing the negative accounts from your credit history. But don’t be too rigid about it. If you can pay off your debts to full amounts or a figure that you and the agency can agree upon then do it.

Utilize Tradelines

The quickest way to increase your credit score can also be to utilize the ideal tradelines for your requirements. Tradelines are accounts that a borrower uses for credit and which is also reported to reliable credit reporting agencies. You can use tradelines for the purpose of credit piggybacking. It is a kind of support that you can use to legally enhance your credit limit, age, or history. But it is important to make use of credit piggybacking from authorized companies only. Yes, you can ask your family or relatives for the same. But they are likely to do so as then they become kind of responsible for your credit charges. When you pay an authentic company for credit piggybacking services, you are likely to get positive results.

Periodically Check your Credit Report

If you don’t know what needs fixing, you won’t be able to remedy it. So, it is essential that you apply for a free credit report from time to time and go through it carefully. Check for negative accounts and any problem areas that could be lowering your credit score. You can apply for free credit reports from authorized government agencies.

Also, check your current credit score with the credit bureaus and see if you need any remedial steps to improve it. If you don’t understand the credit score methods or the ways to properly fix your low rating, it can be a good idea to seek professional help.

Many companies are in the business of helping people improve their credit score by offering simple solutions. So, do not hesitate to approach experts to improve your credit score. Just make sure that the companies you approach are bonded and authentic companies. Many experts may offer a money-back guarantee if your credit score doesn’t improve with their professional help. So, perform an online search to find such authentic companies in your area and seek their help if necessary.

A low credit score isn’t the end of the world. You can raise it easily with these simple steps in no time.

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