We got the best tips in industry on how to Start Building your credit right away from day one. lets discuss the latest techniques and tips to boost your credit building using legal ways.
First of all lets dicuss What is credit ??
Credit is the ability to obtain something with the promise that you would pay for in future in the USA, there are three main credit rating agencies transunion equifax and experian. now while your score can vary between the different agencies it's important to realize that these past its own algorithm for determining your credit worthiness it's generally accepted that the breakdown of your credit score is as follows thirty five percent for your payment history thirty percent for your total debt fifteen percent for the length of your credit history ten percent for new increase on your credit and ten percent for the different types of credit that you have.
So the first one is that you need to check your credit regularly, if you just beginning to build your credit and don't have any credit cards for loans, it's important to check your score to ensure that no one is trying to steal your identity and apply for credit in your name. There even in cases where parents will use their children's identities to apply for credit. While unlikely it's crucial to verify that you're starting from a clean slate and if not the first thing you need to do is go to the process of disputing any fraudulent credit applications. You're allowed one free credit report every year from each agency you can get all three once or scater them through out the year.
The second point is that you can get a credit card and your first option is a secured credit card simply the easiest card to get, yet because it does not require credit check just go to your local bank and put a deposit down and they'll give you a card with a limit equal to your deposit. Another option is a student credit card if you're in university you should look into getting a card to your school's credit union. You can also look into getting a retail card from departmental store. because of the type of card you get to remember that your debt to of the available credit ratio is crucial. Lastly don't apply to twenty different cards because of time of increase in short amount of time will not look good on your credit report.
So third point is that you need to pay your bills on time just having the card isn't enough to use it and pay it off every month. Remember that your payment history typically accounts for about one third of your credit rating so don't ever miss a payment. I know can sometimes be hard and if you do miss a payment on your credit card rather than just avoiding the issue, just call the bank and ask if you can work out a new plan the worst possible thing to do with select delink payments travel to your credit report.
and the final and fourth point is that you can get a different type of loan. so it means if you had a credit card for six months or year, perhaps it's time to consider getting a different type of loan like for a car some people find this counter-intuitive like i have the cash just pay for the car outright why should i get an auto loan. you know there will probably be a time in your life when you do want to be alone on something larger like a mortgage for house you needed credit for that so consider shopping around and find auto loan with a really low interest rates if you're still having a hard time getting approved for a loan ask someone who trusts you like your parents for a close friend to co-sign with you on a loan, of the last one is that it takes time as i mentioned beginning the length of time you've had credit is another large factor in your credit score unfortunately there's not much you can do to accelerate that but this loan should convince you to stop putting it off and start building your credit now.
if you have some good tips on how to build your credit please leave a comment below.