Whether you’re trying to build your credit or need to rebuild it after a rough path, we’ve compiled six simple steps you can take to end up with an outstanding credit score.
Pull your credit report. Per the FACT Act, all adults in the USA can obtain a free credit report every year. Through Equifax, Experian and TransUnion you can request to pull all three reports at once or get them individually throughout the year. From these reports, you can review your credit and any negative information within 30 days of the pull.
Become an authorized user. If you have a close family member who has a good credit standing, you might consider asking if they would be willing to add you to their credit card account(s) as an authorized user. If so, the activity associated with that account will show up on your credit report. While it won’t have the same level of effect as having your own credit card, it will have a positive influence on your rating.
Ask for your rent payments to be reported to the credit reporting agencies. If you’re leasing an apartment, there may be some programs available to you that will boost your credit. Some apartment complexes will report your rent payments to the credit bureaus, and these payments will have an impact on your overall credit rating.
Start with a small line of credit from a retail store. Do you have a favorite store? Try opening up a small credit line and remain in good standing. This can help you build a positive payment history.
Find a no-fee credit card and use sparingly. Much like a small line of credit with your favorite retail shop, you can find no-fee credit cards with a small credit line. Use it for monthly recurring payments, like your Netflix or Hulu subscription and pay it off every month to facilitate a positive credit history.
Sources:
Moneyfit.org. “The 6 Steps to Building your Credit Rating” 2020. https://moneyfit.org/six-steps-to-building-credit
