How to Jump-Start Your Credit History, This Year

Image from www.freedigitalphotos.net.
Image from www.freedigitalphotos.net.

Are you interested to know how you can build a solid credit profile in the current year? If you are then, you’re not alone. That’s because more and more consumers these days are looking for strategies they can use to gradually build their credit history so that soon they can also enjoy excellent financial prospects.

But is it difficult to attain such goal? NOT AT ALL! In fact, there are tried-and-tested tips you can use to jump-start your credit history. To learn more about them, please pay close attention to the remainder of this article.

An Important Financial Step

You can never establish your credit history UNLESS you will apply for and take out a credit program – either a personal loan or a credit card account. This is why you should take the time to look for companies that can extend you a line of credit, despite your lack of credit history. What can help you succeed in this matter?

Well, you can look for firms that work exclusively with consumers who have poor or no credit. After all, with these credit agencies, your chances of receiving affordable credit programs will be much higher as compared to banks and private lenders.

You may also decide to apply for a secured credit card, first. All you need to do is to fill out an application form, submit copies of your identification papers, and make a substantial deposit to your chosen card issuer. This initial cash-out, also known as the security deposit, can help guarantee the immediate approval of your request for a line of credit. In fact, once you meet the financial requirements of your target card issuer, you can expect to receive a credit card account you can use, not only for covering your day-to-day expenses, but one that can assist you in building your credit history in the coming year.

Image from www.freedigitalphotos.net.
Image from www.freedigitalphotos.net.

Do you have a savings or checking account in a bank, nearby? If you do then, you may approach the officers of the bank and inquire about the credit programs they extend to their existing clients. Always remember that your working relationship with the firm can boost your likelihood of being granted a credit account you can use for jump-starting your credit reputation.

It is also possible to ask a close friend or a relative to co-sign your application for a credit account. Look for an individual who has high credit rating and who’s willing to co-sign your request for funds or for a credit card. Bear in mind that the excellent credit standing of such individual can help compensate for your lack of credit history. In fact, it can be instrumental for you to immediately receive the credit program you wish to use and manage.

A Last Minute Reminder

Image from www.freedigitalphotos.net.
Image from www.freedigitalphotos.net.

Receiving a personal loan or a secured credit card to jump-start your credit history is just one part of the equation. You also need to manage your credit account responsibly to maintain an excellent credit reputation.

Always remember that to continuously receive affordable credit offers, you should make it a point to handle your credit cards and loans in the most effective way possible. This often involves keeping up with your monthly bills and dues, abiding by the terms and conditions of your credit program, using the proceeds of your loan responsibly as well as using at most 30% of the spending limit or cap imposed on your credit card account.

About the Author

Emma Lee is a financial consultant and a freelance writer. She has more than 15 years of experience in helping consumers jump-start and rebuild their credit history. She regularly contributes articles to Secured Credit Card Site to provide readers the latest information and trends in financial management.

Image: FreeDigitalPhotos.net

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