Whether you’re a young person who doesn’t have a long history of credit or you’ve gone for a long period in your life without the thought of building credit, now might be the time to consider building credit. Here at Boost Credit 101, we’re all about providing information to make consumers as creditworthy as they can be.
As one of the premier online tradeline suppliers, we have a deep well of resources and information regarding credit and how you should approach it for the most benefit.
There are a few ways in which you can boost your credit from scratch. Come dive in as we explore a few unique credit boosting methods.
Find a Cosigner
People with bad credit or no credit are often advised to open an account with a cosigner.
With a cosigner or guarantor, you can qualify for credit, even if you are unable to qualify for credit on your own. For those who are unaware, a co-signer or guarantor’s role is to pay back any debt if the primary borrower is unable to fulfill their obligation and pay back the lender.
Open a Secured Credit Card
If you’re looking to open a secured credit card, you must make a refundable security deposit that will go toward your credit limit. In the case that you are unable to pay off your credit card bill, your credit card company can use your deposit to pay off the balance rather than losing out on the money you owe them.
Subprime customers are often the targets for secured credit cards. Compared to standard credit cards, these cards often have low credit limits and higher interest rates than what most would deem ideal.
Taking Out a Credit-Builder Loan
Credit builder loans are installment loans, though in reverse. With a normal installment loan, you get the money for the loan upfront and continue making payments until you pay off your debt. With a credit builder loan, you receive the funds once you pay off the loan with a specified number of monthly payments.
While the structure of this loan might seem unusual, it allows consumers with good or bad credit to build their credit without posing a risk to the bank or lender.
Every method on this list has its pros and cons. It’s up to you to determine which one might work best for you. Of course, it’s important to pay your debts off on time and ensure you don’t have any mistakes on your credit report that could be driving down your score.
You can also purchase authorized user tradelines to potentially boost your score.
Here at Boost Credit 101, we specialize in helping people like you raise their credit scores with high-quality tradelines. Make sure to reach out to us with any further questions.
Your finances are a big part of your life and can make or break certain situations. When you’re ready to take the next step in your tradeline journey, make sure to get in contact with us!