5 Quick Ways To Get Credit
Are you looking for ways to establish your credit? Here’s a few ideas…
1. Apply for a secured credit card, where you place a deposit that is equal to your credit limit. You give, for example $500 as a deposit to a credit card company and you are given $500 as a credit limit.
2. If you know of someone who has great credit already and continues to always pay their bills. I have an idea that makes establishing good credit very easy! It called “add an additional user to account”. If there is someone you know and trust and they trust you. That person could add you as an additional user to their MasterCard or Visa account. What you get is a credit card from their account with the same credit limit, balance, interest rate,ect. And the reason this card helps you is because it goes on your credit file. If 4 good people with for good standing credit cards add you as additional user, you will have 4 good credit lines on your credit report.
Regarding the “additional user technique”, do your friends and family a favor and let the keep that credit card in their possession. Don’t spend money they and you are responsible for. The draw down to this technique is if the stop or miss payments, it will also be reflected on your credit report. Make sure you do this with someone you know who will continue to be responsible in the future.
Once you are an additional user, the credit card account should be on your credit report in as little as 30-60 days.
3. Go to a credit union, that reports to all 3 credit bureaus and apply for a loan that is secured by your cash deposit. Part of your cash deposit is used to buy a credit union share and the remainder goes into a regular savings account that may earn a little interest. Now you can use your savings account to secure a loan with the credit union. Pay back the payments every month and build a payment history that will be recorded into your credit file. Some credit unions are mentioned in their report that you can contact and get more details. Check out the example given below!…
Example:
So, you have$1000 to spare…go to your local credit (or bank) and ask the loan rep on duty if you can get a secured installment loan. Deposit the $1000 into a savings account and take a loan for $1000. Of course you will end up paying a little interest for this.
6 months down the road you have an established a good credit “trade-line”. When you payoff this installment loan with your credit union or bank, you get your $1000 back or what ever amount you want to use for this. If you have a $2000 that will look even better, because it will show you can handle larger balances and limits.
Repeat process. Let time pass. (As mentioned before).
4. Apply for credit with a local business, such as a department store. These local merchants may have lower credit standards than larger lenders. They want to sell product, so their credit standards are lower than other lenders. But make sure they report to the 3 major credit bureau before applying.
5. Have a friend or family member guarantee a loan by acting as a co-signer. If for some reason you default on a loan, they would be required to make the payment or pay the full balance.
