How to Get Good Credit Score Rating Simply

Most individuals think the only way to get good credit will require taking on debt but a very expensive debt such as car loan or a credit card will come with a very high-interest rate. This could be done in a different way today whereby you can get good credit without having to take up a huge amount of money or a huge debt. This way will help you improve your reputation in the eyes of lenders and save you the stress of not taking out huge loans. Here is a breakdown of the best possible way to get good credit:

Begin with a Credit Builder Loan and include a credit card to the mix

When using a credit builder loan to get good credit, you will be able to improve your good credit score and also save at the same time. The money which you collect is placed in a certificate of deposit or a savings account which you will be allowed to claim once you have been able to make all the necessary payments and this will be reported to the required bureau. A lot of unions offer this type of loan. If you don’t find it in yours, try to make an inquiry to know if there is any available community development financial institution around that offer this service. You could also ask a self-lender, a registered online lender who gives one-year credit-builder loans of between $550 and $2200. An individual who gets a loan of $550 will have to make get $550 back after making a 12-month payment of $48.50 with an additional administration fee of $12. This loan could be very effective in helping individuals get good credit in the high of 600s and also the lows of 700s.

Irrespective of the amount of loan collected, one year of consistent on-time payment on your loan history with no other credit on the report can greatly influence a good credit score. Once this method has been used to get good credit score up to the mid-600s, it will be possible to qualify for a regular credit card. If this regular credit card is used to make small purchases every month and the balance is being paid for in full, it will be possible to further get a good credit score once this is done correctly. You could also choose to get a secured card earlier if you are willing to make some cash deposit for the credit card. The most secured card will require the cash deposit of between $200 and $2000 to get a limit which is equal to that deposit made. When you use ad secured card irrespective of the limit also side making installment loan payment will help get a good credit score.

Using some store card to get a Mortgage

Most store credit card has always been used as an alternative to a real credit card. Using a store card is an easy way for an individual to build a good credit card but a real credit card for general purposes which is given by banks has more weight when using a scoring formula. If you want to get good credit with a long-term goal of getting a mortgage, a store card might be very helpful. To get good credit, mortgage buyers now look for individuals who favorably pay off their card balance on time, while for individuals who carry balance each month will likely default on most account than those who do not. Unlike the most regular card issuers, store-branded cards usually report the actual amount paid to the bureaus. If your intent to get a mortgage, it is advised to call the store card issuer to confirm if the exact payment amount will be reported to the bureau before deciding to apply for the card.

Begin with just one credit card

Most individuals who are new to using a credit card will accumulate a lot of cards within a very short time of card usage. Try as much as possible to avoid this trend of an opening so many cards within a very short time. The more your cards, the more your you will end up accumulating debts on so many cards at the same time and the more difficult it will be to keep up with your card balance and payments.