5 Easy Ways to Build Your Credit 


If you have bad credit or no credit, you’re probably getting denied for everything that you apply to. Having good credit provides you with benefits such as, good interest rates and negotiating power. There are plenty of ways to build credit.

1.Become an Authorized User

One of the best ways to build credit if you do not have any is to become an authorized user on a trusted person’s account. If you know someone in your family that has good accountability over their finances and has an open credit card, just ask them to add you as an authorized user. The best part is that you get to skip the application process of applying for that particular credit card. The credit card company will report the end balance every month to Equifax and TransUnion. As long as they continue to make on-time payments, you will soon have good marks on your credit history.  


Note: Be careful of whose account you choose to add yourself to. If they decide to make bad credit decisions it will affect your score negatively also. 


2. Open a Credit Card 

You can try to build your credit with a credit card. The best credit cards for people with little to no credit are secured credit cards.These cards offer smaller credit limits that can help you learn to use your money wisely. Most secured credit cards require that you send in a refundable deposit which will start as your acting credit limit. At the end of your billing cycle, they report your end balance to Equifax and Trans Union. 

3. Take out a Loan

Whether it’s a car loan, student loan, personal loan or mortgage, taking out a loan can drastically build your credit. Making payments on a loan builds trust with the banks as a lender. If they’re paid on time, they can help you build a positive payment history, which is a major factor in calculating your score. Your credit score might slightly go down when you first take out a loan,  but it will rise over time with regular monthly payments.Focus on making those payments on time to continue building your credit.

4. Dispute your debt

If your credit is bad because of existing collection accounts, then you need to figure out a plan to remove those accounts. My first choice is to always dispute information with Equifax and Trans Union. It is required by law that all information on your credit report is accurate information. All you have to do it write a letter requesting that your report be reviewed. If the information on your report is correct, then you probably should negotiate a payment with the collector and have them agree to remove the debt from your credit report. 


5. Download Credit Karma

If you’re interested in learning more about how to improve your score, download an app called Credit Karma. It provides you live updates of your score and gives you a detailed summary of whats on your report. They also provide tools to easily dispute items off your credit and road maps to debt relief. Millions of people use Credit Karma to monitor their score including myself.