The Best Legal Ways To Build Credit
Building credit or rebuilding credit might be easier than you think. In fact, there are many ways to legally and quickly build your credit. Regardless if you have no credit or poor credit, you might want to consider the below tips to put you on the right track.
1. Authorized Credit Card User
One of the easiest ways to rebuild or build credit is by becoming an authorized user on a credit card. The way this works is someone you know who has a credit card will let the credit card company know that they want to add you to their card. By doing this, you will become an authorized user of the card. You don’t even have to actually use the card, as your credit report will be affected by the main user when they make payments on their credit card. Tradelines is an easy example on how you can get this done we recommend to check tradelines for sale here.
2. Get A Credit Builder Loan
Credit builder loans allow you to build credit, but not many people know about them. Smaller lenders typically have the loans available. The loans are meant for people who want to build or rebuild their credit.
The way these loans usually work is you are required to put a small amount of money into a savings account or a CD. The money will sit there until your loan has been paid off. The most important thing to do is make all of your payments on time. If you do that, then you will have build your credit throughout the duration of the loan.
One of the best things about credit builder loans is they are usually easy to get. Not only that, but interest rates are reasonable. This is why you have to set aside cash to put up as collateral when you are approved for a credit builder loan.
3. Peer-To-Peer Loans
These are loans funded by a group of investors an individual investor who makes money from the accrued interest on the loans they funded. Peer-to-peer loans are completely legal, but you will want to apply for a peer-to-peer loan that accepts people with a low credit score or those who have no credit. This is easy to do, but make sure you review the loan’s terms and conditions before you apply. If you’re approved, then always make your payments on time because this is how you’ll end up building credit.
4. Credit Card
Finally, you can apply for a credit card. However, apply for credit cards that are designed for those with poor credit. These types of cards typically require a deposit that you’ll eventually get back if you make your payments on time. Also, the amount you’ll be approved for will likely not be much, but your credit line may increase within a few months if you pay your bill when you’re supposed to.
Those are the top legal ways to quickly build your credit. Remember, you want to be consistent when it comes to making payments to bills that can affect your credit score. Be patient and eventually you’ll notice a major improvement to your credit score, even if you currently have no credit, little credit or a horrible credit score.