Adding Positive Credit
A great credit report is built on a credit history, a good credit history is built on
positive credit, and your score is the result of your credit history.
If you are lacking in the credit history department, there is no better time than
now to begin building a strong foundation of positive credit. It has to start
somewhere, and people do it every day. But what if you have poor credit to start
with, and it’s difficult for you to get approved for credit in the first place? Here
are some ideas to get your started…
Apply for a Secured Card
Secured credit cards give you a limit that's typically equal to the deposit that you
make in advance.
When shopping a secured card, you’ll want to find one that:
•
Reports to all three credit reporting agencies
•
Doesn't charge an application fee or outrageous annual fees
•
Converts to a regular, unsecured card after 12 months or so of on-time payments
Getting a secured credit card ensures the addition of a new, revolving account
with a good payment history to your credit report.
Get a Gas Card
These cards tend to be the easiest unsecured plastic you can get. After you've had
your secured card for a few months, apply for a gas card and even a second one
about three months later. Don't rush this process, because adding too much
credit in too short a time period can hurt your score.
Get an Installment Loan
You could take out a small personal loan from your bank. Or you might want to
simply "suck it up" and go for a high-rate auto loan. We have seen customers of
The Credit People go from a 21% interest rate to a 6% interest rate in 36 months.
