How to Build Credit With Credit Card

How to Build Credit With Credit Card

Are you wondering how to build credit with credit card? First, you need to realize that it is never easy to build credit. Unless you have a good credit history, you will find it difficult to get a loan, buy a home or even get a credit card. So how should you show that you have a history of good repayment when no one is willing to give you the credit card?

How to establish credit

The first step towards fixing your credit score is to apply for a secured credit card. This is a card that is already backed by a cash deposit that you make first. This amount of deposit equals your credit limit. The card is used like any other card. You can use it to make payments, and buy things before the date that is due. If you fail to pay the balance  in full, interest is charged. Once you opt to close an account, you are refunded your deposit in full. You need to remember that the goal is not to use the secured credit cards for the long-term. Instead, you are aiming to get a card that will not require a deposit. Make sure that you also select a secured card that has an annual fee that is not high. Ensure that the card reports to the 3 credit bureaus: Experian, Equifax and TransUnion.

Another option is to apply for a loan that will help to build your credit. This is a loan whose purpose is to help you build your credit. The money that you will borrow will be held by the lender in a particular account will only be released after the loan has been repaid. This is a kind of a saving program and the repayment you make will be reported to the credit bureaus. The loans are mostly offered by community banks and credit unions or even online.

Another alternative is to have a co-signer help you to get unsecured credit or loan. You will need to inform the co-signer that they will be required to pay the amount if you default. Alternatively, you  can build your credit with credit card by using someone’s else credit card. When someone authorizes you to use their credit card, you will enjoy using the credit card and you can easily build on your credit history. However, you aren’t allowed around to use the card to pay for your obligations.

About author

You might also like

Finance 0 Comments

TradeLTD FX Broker: Easy Tips for Trading in the Forex Market

The forex market is a complicated one and it is easy for a beginner to get confused and lost in the details of it. The information on the internet can

Finance 0 Comments

MakeMyTrip Card | American Express

American Express is an American multinational financial services corporation, which is headquartered in New York City. Founded in the year 1850, the financial institution is best known for its several

Finance 0 Comments

Why Should You Build a Good CIBIL Score For the Future?

It seems like adulthood is all about planning for the future. It may not be something you look forward to. But you should not avoid it. Otherwise, you could bear


No Comments Yet!

You can be first to comment this post!

Leave a Reply