At the start of the credit repair process folks tend to focus only on removing the bad items. Many times folks will start without any open accounts. This won’t get you the results which you need to see. Happily this is a situation that may be fixed and we’ll show in detail how here.
There’s a common misconception that bad items are the major factor in deciding your score. In reality it is just as important to have positive current activity. So as to see real improvement in your credit score you ought to be reporting positive items to the credit bureaus every month.
So What Can You Do?
Step one you want to take if you’ve got no open accounts is open one. That probably sounds like the very last thing you must do but hear us out. While you might still be able to get an unsecured card your best bet could be a secured one.
So What Exactly Is a Secured Credit Card?
A secured credit card could be a potent credit building tool. Essentially a secured card is backed by collateral that you provide to “secure” the card. For credit building purposes it’s typically a relatively small amount of cash that becomes your borrowing limit. This protects the creditor and allows you to make a positive rotating debt. Be sure to keep your balance low and your payments on time.
Take Advantage of An Authorized User Account
If you have a relative with a good credit history see whether they’ll put you on as an authorized user. This option will not be available in every situation due to family circumstances. But if available it’s a great credit building tool.
The method is very easy and you need no qualifications. They will require some personal information such as your social security number. The card holder simply calls the card provider and asks to have a card sent to you for emergency purposes. Within 2 months the card should show up on your credit report and you will get advantages from their excellent credit practices.
While the authorized user methodology is an easy way to lift your credit rating, it alone can’t “fix” your credit. Building credit for yourself as well as becoming an authorized user will get you back on the fast track to great credit.
If you want help improving your scores please check out my site on credit repair. Our top credit expert could be the solution to you credit worries.