Building Credit with Bad or No Credit

It’s one of those baffling questions that lingers to haunt us when it seems there is no hope, how on earth do you get good credit when no one will even approve you! It’s kind of an oxymoron type of situation, that we’ve actually dedicated our career to finding the solution!

Check this out…

If you have bad credit, and you are trying to make sense of how to apply for credit to be loaned in order to FIX the damage that has been done already then you’ve come to the right spot.

Having over 10 years of experience in this industry, it’s taken YEARS to figure out this solution (and trust me we’re still learning)

So here it is the solution that we’ve found and want to share with other consumers struggling to leave their bad credit in the dust!

HOW TO BUILD OR RE-BUILD YOUR CREDIT WITH NO CREDIT OR BAD CREDIT

AUTHORIZED USER ACCOUNTS

If you have a friend or family member who you KNOW has good credit, try asking that person to add you on as an authorized user to their credit card account. This is a safe way of adopting their credit history onto your credit profile as long as they make their payments on time and keep their balances low. Being added as an authorized user does not allow you access to any of their information and does not give you the opportunity to spend on their credit line, but instead allows you to adopt their entire credit history from the account they added you to and can help with a healthy boost of points! Remember: always chose an individual whom pays their credit card every month on-time and keeps their credit card debt to the very minimum, any credit line that is over 20% in debt will not increase your score’s points!

SECURED CREDIT CARDS

If an authorized user is not an option, the next best route would lead you to signing up for a SECURED credit card. Just like unsecured credit cards, you will have a monthly minimum payment, and will reap the benefits of an increase in your credit score as long as the payments are made on time every month. The difference is you will be asked to put down a “deposit”, typically $350-$500 and that will be your credit limit. You will not be able to spend OVER what you have put down. This gives security to the lender that your balance will be paid no matter what. However, since a secured credit card reports to the bureaus just as a unsecured card would; this is a great way to re-establish good relationships with other creditors and boost your credit scores.

DEPARTMENT STORE CARDS

If you are an individual who is looking to actually start establishing credit for the first time, signing up for a department store credit card such as Macy’s, Sears, Nordstrom, etc., can be an easy approval and a great way to actually establish credit for the first time. Please note, this is not an option for every consumer, if you already have bad credit established you will not be able to use this method! Typically interest rates are a bit higher with these credit lines, but if you keep your purchases small and pay off your entire balance each month, you may be surprised at the good credit you can build and actually benefit from!