Did you know that having no credit can be worse than having bad credit? It's true! Without a credit history, lenders have no way to gauge how risky it is to lend you money. But don't worry, there are ways to start building your credit from scratch.
Here are some tips to help you get started:
Apply for a secured credit card: A secured credit card is a great option for those who are having trouble getting approved for a traditional credit card. With a secured card, you'll need to put down a deposit that will act as your credit limit. As you make payments on time, your credit score will start to improve.
Report your rent payments: If you're a renter, ask your landlord or property management company if they report your rent payments to the credit bureaus. This can be a great way to build credit if you're not quite ready for a credit card.
Become an authorized user: If you have a family member or friend who takes good care of their credit, ask if they can add you as an authorized user on one of their credit cards. This can give your credit score a boost, as long as they make their payments on time.
Remember, building credit takes time, so don't get discouraged if you don't see results right away. The key is to be patient, make your payments on time, and with time, you'll start to see your credit score improve.
If you have any question or need more tips, contact us today. To sign up for our credit monitoring services (third party), which comes with a free monthly audit from our team, click here.
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