Four Ways To Build or Rebuild Credit

Four Ways To Rebuild Credit

Build or Rebuild Your Credit

The bad news is that some of us have poor credit or not enough credit; therefore our score is stagnant. The good news is there are ways to help us build or rebuild our credit.

Below is four ways to add positive tradelines to your credit report. This is perfect for those who are working on repairing their credit and for those who need a boost in their credit score.

1. Apply for a secured credit card

If you apply and get approved for a secured credit card and use it responsibly, you can watch your score increase while you work to get rid of the negatives. All of the major credit card issuers offer them. Stay away from subprime card issuers as most have no grace period on interest and monthly fees. Do your research!  Read the terms of all credit card offers. Discover, Capital one, Open Sky, etc. are just some examples of card issuers that offer secured credit cards. You will be required to pay a deposit. It’s worth it!

 2. Become an Authorized User

Let’s say your parents, spouse, or sibling has good credit. They are trustworthy and manage their credit cards well. Ask to be added to their credit card as an authorized user. Just don’t get a copy of the card. You’ll immediately see a FICO score increase. All of their good history with that card is added to your report without a hard inquiry. The best part is that none of your negative credit history will be added to theirs. Bonus, you can request removal at any time since you are not legally responsible for the charges.

Make Payments on Time & Keep Balances Low

3. Sign up for Self lender

Self lender offers a small loan that is held in a Certificate of Deposit (CD). You are essentially building credit while you save and earn interest. You choose the dollar amount you want to save each month and the terms (12 months). Every time you make a payment, you receive a good mark on your credit report. Double benefit: you are saving & boosting your score. The only drawback is if you miss a payment it will look like you’re late on a loan. So don’t miss a payment! You’re paying yourself remember?

4. Try the Shopping Cart Trick (SCT)

You can apply for certain store credit cards issued by Comenity Bank without a hard inquiry. Here, you’d add an item to your shopping cart, and at check out you’ll be asked if you want to apply for their card (preapproval pop-up). The trick is when you get the preapproval pop-up, enter only the last 4 digits of your social security number like this: 000-00-1234. However, clicking the APPLY button on the website will result in a hard inquiry even if you enter the last 4 digits of your social security number. Some people have reported getting a hard inquiry even when they receive the pop-up, but most people do not.  For a full list of store cards obtainable via the Shopping Cart Trick, join our FB group.

Unfortunately, SCT may not won’t work for everyone, but here are some tips you can try:

  • Turn off your pop up blockers.
  • Review your credit report for old addresses and try each one.
  • Opt-in to pre-approval offers.

These methods work

If you try these options to build or rebuild your credit remember to use them responsibly. If you do, you’ll be well on your way to improving your overall credit history and credit score.

Have you tried one of theses options to improve your credit and boost your score? Comment to tell us about your experience.

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