No Credit History? Use These Tips from FreedomPlus to Start Building it Today
Good credit is important for many reasons. It enables you to finance a car, get loans, or even purchase your own home. But if you don’t have any credit, it can be hard to establish good credit. Fortunately, there are some ways that you can begin building your credit, even as early as age 15. Here is some information from FreedomPlus that could help you start building your credit today.
Tip #1: Get a Credit Card
Even if you have little to no credit history, you may still be eligible for some credit cards. For example, you could apply for a secured credit card. With a secured card, the limit is small, and you will have to send the creditor a deposit for the amount as collateral, but in return, you have the opportunity to establish credit.
If you are currently a college student, then you may qualify for student credit card. These cards are geared specifically towards students without much credit history. And they offer another way to build credit. However, they do normally require some credit to apply. So, you may need a secured card or another form of credit before applying. FreedomPlus recommends that with either of these types of cards, you practice discipline with using and paying them.
Tip #2: Get Your Name on Someone Else’s Credit Card
Did you know that by adding your name to someone else’s credit card you can build credit? It is true. If a parent or other adult with good credit add your name as an authorized user on their account, then their on-time payments on the account are also credited to you. According to FreedomPlus, this is one way to begin establishing credit. And you can be added to an adult’s account as early as age 15.
Tip #3: Pay Your Credit Cards on Time
To help establish your credit, you can get a credit card. However, it is crucial that you pay it on time. One of the most important things that lenders want to see is that you pay your bills on time. In fact, 35 percent of your credit score is based on your payment history. So when it comes to credit cards, proceed with caution and don’t charge any more than you can afford to pay.
If you find that it is hard to remember when to make payments, Freedom Plus recommends that you try setting up automatic payments. With automatic payments, your bank account is drafted each month for your credit card payment. You can set the amount and recurring date, and never have to worry whether you might forget it.
Building Good Credit is Important
As you begin to build credit, it is important that you establish good credit. Good credit allows you to make big purchases, get lower interest rates, and ultimately lower payments on things. So make your payments on time each month and don’t spend more than you can afford to.
If you did not get off to a good start and find yourself in debt, then making these monthly payments may be difficult. Fortunately, it is not too late to reestablish yourself. With FreedomPlus, you could receive an unsecured loan to pay down your debt. The process is straightforward and you could receive an answer the same day.
Want to learn more? Contact them online to get started.