Building Credit - Discover 3 Proven Strategies That Will Help You Establish And Rebuild Credit

Building credit from ground up is not an easy task

. But with a little education, discipline, and direction, you can build triple A credit within a two-year duration. When you start building from scratch, it could be challenging because you do not have a history that demonstrates your payment pattern. If you are rebuilding after foreclosure or bankruptcy, you will face an uphill battle because of your not so perfect history. In this article, I will disclose to you three proven strategies that you can use to start the building or repairing process.

Building credit strategy 1 - Using Retail Store Cards

This method is good if you are building for the first time. Retail cards like those at Macys and JCPennys are easier to get than a Visa or Master card. The reason the retail cards are easier to get is because they grant lower limits and the card is tied to merchandise in their store only. Apply for a card and then make your payments on time for six months. Pull your bureau report and check your payment history.

Building credit strategy 2 - Using the Builder Loan - Credit Union

This method is good if you are building or rebuilding. You know how important it is to have excellent credit. A Builder Loan is your key to establishing or reestablishing your file. Heres how it works. The Union loans you money that is deposited into a certificate of deposit. You make regular payments that are reported to the three bureaus. Once the loan is paid off, you get the certificate of deposit and have a better score. The benefits of this program are that you dont have to put any money up front; the Union reports to all three bureaus, and you establish a small saving at the end of the 12-month installment period.

Building credit strategy 3 - Using a Cosigner

This method is good when you are trying to rebuild or establish credit. Talk with a family member or a friend to have them cosign for you since you dont have any credit are trying to build it. Cosigning means that due to your lack of or poor history, the bank would like someone with a good file to back you up in case you default on the loan. Now, if you stop paying on the loan, the bank will go after your cosigner for the balance of the loan. Start with a small loan at the bank and make your payments on time for a year paying off the balance so that you can release your cosigner.

Concluding, the above techniques work if you give them time. Always pay your bills on time and do not over extend yourself with personal loans. Now that you are empowered with new information on building credit, go out there, and take action.

by: Mark Clayborne

POST COMMENT

Very Bad Credit Loans- Holding Good Credit Is Not Essential No Credit Check No Fax Payday Loans- Pretty Easy Financial Assistance Bad Credit Loans: Accomplish Financial Requirements No Credit Check Personal Loans – Get Rid Of Your Financial Problems Same Day Loans No Credit Checks- Assistance Irrespective Of Credit Scores Can You Get Bad Credit Loan Chinatown Easily? Bad Credit Unsecured Loans - Fresh Credit in Spite of Poor Credit History Very Bad Credit Personal Loans - Always Ready for You Bad Credit Loans In Georgia-boost Your Credit Background Quick Loans Same Day- Improve Your Deformed Credit Score No Telecheck Payday Loans - An Opportunity For Bad Creditors Car Loans For People With Bad Credit-for Satisfying Your Wants Best Credit Cards Offered by Capital One