Building your credit is a huge hurdle you need to face, and it will determine your financial health and freedom. If you don’t have a credit history, you won’t be able to take out a loan, purchase a car, or even get an apartment. That’s how important your credit score is. But what if you already have good credit, which was dented when you missed a payment. How will you be able to fix that? Fortunately, many companies are willing to help you get a second chance. One of them is creditbono, which offers help to improve your score.
Aside from CreditBono, there are other simple tips you can follow. So if you’re wondering why you need to build good credit, the answer is simple. You need good credit to attain more financial freedom.
Apply for a Secured Credit Card
If you’re building your credit from scratch after a long history of poor credit score, you must start by getting a secured credit card. Before you open a secured credit card, you must deposit a particular amount. This amount will usually be your credit limit, and most cards will accept a minimum cash deposit of $200. After that, the secured credit card will act like any other credit card, which you can use to make a deposit. Once you have a good track record of being on time when it comes to paying the bills, you will be qualified for an unsecured credit card.
Become an Authorized User
You can add yourself as an authorized user of a family member’s credit card. In that way, their payment history will be added to your credit files. So if you want to become an authorized user, you need to look for someone who has a history of paying their bills on time. Aside from that, it will reduce the time it takes to generate a FICO score. The best part of it all is that you don’t need to use the card or have it in your physical possession. You can still reap the benefits, though.
Practice Good Credit Etiquette
The obvious habit you should practice is paying your bills on time or paying the minimum if you lack the budget. Aside from that, prevent using your credit card on all of your purchases. Keep it below 30% if possible because the lower the credit card utilization, the better your score will be. You also need to avoid applying for credit cards so close together because it gives the bank an idea that you’re in a bad financial situation. Lastly, keep your accounts open to avoid hurting your credit utilization.