Finances are one of the biggest responsibilities for every individual. Without proper management, you won’t be able to hit financial milestones in your life—from buying a home, car or to making significant investments. With that, it’s important to spotlight these factors to ensure you’re going through the right path to financial success.
If there’s anything you’re supposed to milk when it comes to finances, it’s your credit. When you have good credit, you’re able to get personal loans, borrow money from established financial companies, and more. But building credit is not as straightforward as it seems, and it will require you to be extra responsible and mindful about your spending.
Perhaps you’re here because you’re wondering how to build proper credit. If that’s the case, keep reading. In this article, our financial experts will share with you quick and correct ways to build your credit. Let’s take a look!
Tip #1: Be an Authorized User
You most probably have a spouse, parent, or trusted friend who has excellent credit. If so, consider asking them if you can be an authorized user of their account. If you’re an authorized user, you’ll get the account’s credit, but you won’t be responsible for the charges.
Additionally, make sure to double-check that the credit card company will report your status to credit bureaus. If they don’t, you won’t get credit.
Tip #2: Obtain a Secured Credit Card
With a secured credit card, you’ll need to provide a deposit before you can open an account. This deposit will be considered your credit limit. Since there is less risk to the lender, you could have a much easier time securing a secured credit card.
Fortunately, you can use your secured credit card just like a traditional credit card. With this, you can purchase up to your credit limit and continue to pay it off.
Tip #3: Apply for a Credit-Builder Loan or Secured Loan
Some loan companies offer credit-builder loans and secured loans to help build a positive payment history, similar to having a secured credit card.
Credit-builder loans help you make payments and deposit them into a dedicated savings account. And once you’ve reached the repayment period, you get to retrieve the money minus the interest or fees.
On the other hand, secured personal loans require you to give collateral to secure a loan, such as machinery, jewelry, and other items of value.
Tip #4: Get a Credit Card to Pay for Monthly Fees
A great way to improve your payment history and give your credit a boost is by paying your monthly dues and expenses using your credit card. After that, pay the statement in full. When you do this, you can make payments that will go straight to your credit report, providing you with positive results.
The Bottom Line: Start Building Your Credit as Early as Now
As mentioned previously, having good credit can help you apply for loans in various loan companies, giving you better chances of getting approved. If you’re thinking of getting a loan, it’s worth making an effort to build your credit as early as now, so application and approval for a loan would be much smoother.
How Can We Help You?
If you’re looking to build or rebuild credit, consolidate bills, or if you’re caught in a financial bind, it’s best to work with a company that can provide you with a simple and quick borrowing option.
Here at Opelika Finance, we understand the time-sensitive need for help regarding funds. We create same-day loans ranging from $202 to $1491 with clear, fuss-free, and simple repayment plans.
Let’s create a ,personal loan for you today!