Having a good credit score is essential in today’s world. It helps to enable you to get loans, credit cards and other lines of credit. If you do not have a good credit score for whatever reason then we recommend that you follow these proven steps to build up your credit rating over time.
If you see companies promising to build your credit score fast then ignore them. They are lying to you because fixing your credit score takes time. There are no miracle quick fixes so do not fall for any of these marketing tactics.
Follow these recommendations to establish a good credit score:
- Check your credit report and contact the relevant agencies for credit reporting to correct any errors
- Each inquiry made to your credit report is going to lower your credit score so do not make lots of inquiries
- If you are looking for a mortgage then use a broker as this a good way to limit your credit report inquiries
- Maintain your residence and employment status for a minimum of 2 years
- Open savings and checking accounts
- Do not exceed your credit card balance or maintain a balance close to your limit as this will negatively impact your credit score
Here are three things that you can do to build a good credit score:
Regularly Check Your Credit Report
In the United States there are 3 main credit reporting bureaus:
- Trans Union
Every year you can request a free report from each of these bureaus. When you receive your reports, check all of the details and look to see if there are any statements about unpaid bills or late payments.
There are other things that you need to look for on your credit reports as well including:
- Accounts where you have paid everything on time
- The correct information for your place of residence
- The correct details for your employment including your job title
- The listing of your correct social security number
All of the credit bureaus will happily make one error correction at a time and you have to inform them of the changes that you want using registered mail.
Apply for Accounts With Department Stores and Other Companies
You need to open new accounts gradually over time. Trying to open several new accounts in a similar time period will likely lower your credit score. The reason that we recommend department store cards is that many stores will provide you with a credit account without intense credit checks.
When you get a new store card you need to use it wisely and be sure to make all of your payments on time. This will help to build your credit score over time. There are a number of stores that will extend credit without intense credit checks:
- Appliance stores
- Auto dealerships
- Furniture stores
- Gas companies
- Jewelry stores
- Tire stores
As an alternative to obtaining credit cards from stores you could arrange for a small personal loan from a credit union or a bank. Pay everything on time and fully pay off the loan. Another option is to go for a secured credit card that will report to the 3 major credit bureaus.
The Authorized User Option
By becoming an authorized user of a credit card account that has a good credit history you can build a good credit score quickly. You are not going to use the credit card, just by being an authorized user on a good account will improve your credit score because the owner of the account always pays their bills on time.
If you cannot find an individual to help you with this then there are companies you can hire to become an authorized user of one of their credit card accounts. Some of these companies have accounts with many years of good standing that will help to boost your credit score.
At Credit Achievers we have an excellent reputation for helping people like you build good credit. We will do all of the heavy lifting for you. Find out how our services can help you here.