man pushing needle on credit score higher from fair to good

If you are new to the world of credit you must have heard the saying, “In order to get credit, you must have  credit history”. Well, this at times can be pretty frustrating and difficult especially for a credit newbie. Most of the big milestones in life such as leasing a car, buying a house need to have a great credit history. 

If your credit score isn’t up to the mark or is nonexistent, you may find it very hard to actually get approved. Most credit cards or even other lines of credit require at least some sort of credit history for you to qualify for a mortgage or loan. Remember the fact that the credit scores are completely based on how you have managed past debts. Lenders make use of this score in order to establish the overall risk level that you pose as a borrower. 

If you have a long history of making timely payments and managing your overall debts responsibly, you are  likely to have a good credit score and might also have a better chance of getting approved for credit cards at favorable terms and conditions. Furthermore, if you have minimal credit history or if you have negative information in your credit report, then chances are high that you will find it difficult to get approved for a new account. 

Remember, building credit does take time but the overall benefits of doing so are huge. Even if you aren’t planning to apply for credit lines anytime soon, you need to start working on it as soon as possible so that you will have a good credit score for future use. Below we will discuss some of the best ways to build credit fast and easily. 

Ways To Build Credit With A Credit Card

In case you are thinking of ways to build credit then remember credit cards are undoubtedly the best tools available for building credits. They are one of the most commonly held forms of credit and can be used in day-to-day life in different ways that can be beneficial for building credit over time. Using a credit card for buying groceries or even booking tickets for instance and then paying it off in a timely manner helps lenders to understand that you can responsibly manage debts. In case you are planning to build credit with the help of a credit card, it is really important to remember that the way you use it determines whether your scores are helped or hurt. Here we have listed some of the best ways to build credit with the help of a credit card. 

Paying All Due Bills On Time

Remember no strategy can work especially if you make late payments. Payment history is one of the biggest factors that can adversely affect credit scores. Moreover, late payments on your credit report can last for as long as seven to eight years. If you have missed payments for thirty days or even more, try calling the creditor as soon as possible. Try to arrange funds at the earliest and also ask your creditor for an elongated payment time. Remember every single month an account is marked delinquent actually hurts your score. However, it is also fortunate that the overall impact of missed payments fades over time. Showing positive credit behavior after one single misstep can actually help in offsetting the damage quickly thereby improving your credit score. If you are simply not able to pay everything on time, try to know how to prioritize your bills. Also, look out for any financial assistance offered especially in response to the covid-19 pandemic.

Apply For A Secured Line Of Credit

Getting hold of a secured credit card is another good way to build credit, especially if you have none. Secured credits are usually very much easy to get qualified for if you are have no credit history. Furthermore, you can also use a secured credit card just like a traditional one and it can help a lot in establishing good credit as long as you keep practicing good credit behavior. Secured lines of credit are almost identical to an unsecured card. Secure credit lines provide you with a credit limit and also incur interest charges and rewards. The key difference between these two credit lines is that you need to make a security deposit to receive a line of credit. In most cases, the amount you usually deposit starts from 200USD which often becomes your limit of credit. So if you deposit security money of 200USD, then you will receive a credit limit of approximately 200USD. 

Get Credit History By Paying Home Rent, Utility Bills, And Phone Bills On Time

In case you don’t want to build credit by making use of a credit card, another great alternative way to build credit is by making use of home rent and utility bills. Several financial institutions including Credit Rent Boost offer different credit-building tools that can help in building credit over time.  These types of services allow you to get credit for paying different types of monthly utility bills, cell phones, and even streaming services bills on time which altogether has a huge potential to build your overall credit score. Some of the qualifying streaming payments include Disney+, Netflix, Hulu, HBO, and Starz. In order to avail of this facility, you need to simply connect your bank account, verify all data and then confirm it to be added to your credit file. You can soon get an updated FICO score and can even avail a copy of your credit report. Once you have established good credit, you can then avail different sorts of unsecured credit cards.

As we have discussed, eady another great way to build credit is by making use of your home rents and utility bills. If you have any such plans, you can try using our services. We at Credit Rent Boost work hand in hand with different homeowners and tenants and report their monthly rent payments to the credit bureaus. Furthermore, with us, you can stay assured that all your confidential data is in safe hands. In case you have any further questions, try to have a glance at our website. 

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