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When You don’t have any Credit, What’s the Best Way to Start Building it?

If you’ve been advised that you must obtain collateral in order to obtain credit, this can be very frustrating. Any of life’s big milestones, such as buying a car, buying a house, and taking out student loans, will necessitate a high credit score. On the other hand, if your credit score is poor (or non-existent), you will have difficulty getting approved for these loans. And if you don’t have any credit right now, there are a few things you can do to start building it.

Get Approved as an Authorized User

Consider becoming an approved user on a family member’s or friend’s credit card. You may use the credit card of the primary account holder to create your own credit history. Furthermore, since you would not be liable, this is a low-risk way to begin building your credit history.

Of course, you must ensure that your family member or friend is happy with the agreement and that he or she is responsible with their credit card. You don’t want to become an approved user on an account with a history of late or missing payments, as this will negatively affect your credit score.

Fill out an application for a Secured Credit Card

Obtaining your own credit card is another choice worth considering. Another low-risk way to increase your credit history is to use a secured credit card. You will deposit funds into an account, and the sum you deposit will determine the credit card’s cap. As a result, you don’t have to be concerned about exceeding your credit cap. Look for a secured credit card that doesn’t need an annual charge.

Make On-Time Payments on Your Monthly Bills

And if you don’t have a big loan, such as a mortgage, you may still have recurring monthly bills for mobile phones, internet, and other utilities. Make sure you pay all of your bills on time, each and every time. There are programs that will give you credit if you pay your return bills on time, which will help you create a good credit score.

Establish a Good Credit Score from the Ground Up

These are a couple of the best ways to start building a good credit score, even if you have none. The more bills you pay on time, the better your credit rating would be. Then you’ll be eligible to qualify for loans that are more affordable and bigger. You can rely on USA Credit Repair for all of your credit repair and improvement needs, including credit construction. Give us a call right now!