How to Start Building Your Credit

There are certain things that one must do right in order to have ease in life. An important thing in this regard is the credit history that one develops over time. To get loans and other forms of credit on decent terms, it is important that you have a good credit score and a clear history, free from any red flags. There are many small yet meaningful steps that you must take in this regard. This article will take you through some of the basic steps required to build a good credit score. It is a process that takes time and does not happen overnight. You will need to persevere in order to build your credit.


  • 1

    Secured Credit Card

    One of the best ways to build credit is to get a secured credit card. Often people with little or no credit cannot get credit cards that are unsecured. You need to pay a certain amount of money as a security in order to get the card. Use it carefully and do not consider it to be your license to become a shopaholic.

  • 2

    Pay Bills on Time

    The payment may not be reported to credit unions in most cases but non-payment certainly is reported. It is important that you do not miss any of these bill deadlines. It will also save you from penalties that are placed when you do not pay bills on time.

  • 3

    Buy a New Car

    This is the craziest yet the fastest way of building your credit. When you do not have a long credit history, car dealerships generally like to rip you off. If you buy a new car, go for one that costs under $20,000. Let the dealership charge whatever annual percentage rate they want to charge , be it even touching double figures in a day and age where 5% is considered a touch high.

    The catch is to get it approved for financing through a first chance lender. Doing so will help you boost your credit score to great heights within next six to eight months and you can then trade in the car and buy a new one on our own terms. If you are not getting financed by a first chance lender, it is not a good deal for you.

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