Today, we are so focused on credit and it seems everywhere we turn, we are always having our credit scores and history researched by someone else. Building and rebuilding your credit takes time and effort, but you are never lost when it comes to your own credit. At any age we are faced with many credit challenges like having “no credit” and “poor credit.” Whether you have never had credit before, or if you have gone through our credit repair program and are looking to continue improving your credit, follow these simple guidelines:
Consolidate All of Your Credit Into One Loan
A fast way to building credit is to take out a secured loan and pay down your debt, otherwise known as “consolidation.” This has huge advantages. You are now focusing on one loan instead of managing various accounts and dealing with the hassle of remembering many due dates. Late payments and missed payments greatly impact your score, and to keep your own score rising, you will want to be sure you are on time every time. Also, with a secured loan, your interest rate may be substantially less!
Use Credit Cards Strategically and Wisely
Everything purchased can be charged, including your groceries, toiletries, morning coffee, etc. Use this to your advantage! A great way to positively impact your score is to continue to purchase your everyday items, however, pay for these items with your credit card instead. Don’t let the charges add up though. Pay off the card every month with the money you were already going to spend on your everyday items.
Buying a Car? Consider Leasing
Car buying is a big decision and is sometimes a scary one. You are making a promise to pay quite a bit of money you don’t immediately have available. You may share the same concern as a lot of people with similar credit situations: approval. An easy and reliable solution is to investigate leasing a new vehicle for a short term, perhaps with a cosigner. New vehicles pose minimal risk to the bank, but new car loans seem to rise year after year. A short-term lease keeps your payments low, and in no time at all you will have successfully made your last payment. Your score will thank you for it.
Only Have Your Credit Pulled When Absolutely Required
We are faced with credit decisions every day and it is important to be aware of these decisions and understand when it is the right time for someone to run your credit and check out your history. Each credit “pull” is recorded on your report and, if they happen too often, your score can be negatively affected. Retailers may tempt you with the opportunity to open one of their cards as a “credit builder” but doing this often is not a good idea. Sure, it’d be nice to “save 10% on today’s purchase by opening up a *insert store name* charge,” but it could cost you more money in the long run than you’ll actually save.
Building your score takes patience. Your credit’s history plays a vital role in your score. Good payment history and long lengths of time accounts have been open positively impact your score. Don’t open multiple cards at once and begin charging many of your purchases to show history. It takes time to provide good history and great credit scores don’t happen overnight. Stay positive and be mindful of your charge habits.
What if This Stuff Isn’t Enough?
Following these easy guidelines for credit building will help you build a strong credit history. However, if you’re looking for intense credit repair, then you should really consider our New England Credit Repair process. Unlike the guidelines above, our process fixes bad credit and has been working successfully for Maine, MA and NH residents for a very long time. Our process eliminates bad accounts from your credit report so that new creditors won’t even know they happened! And, your score will reflect the absence of those bad accounts. Click here to learn about our credit repair process.