No matter what your financial goal is any large or major purchases are gonna require some credit. Starting with no credit it’s going to be pretty difficult to accomplish this if you cannot get a loan. In this post we’re gonna go through two methods that i myself used to help start building some credit from no credit.
For starters one great and easy method of building some credit is through a credit card. I know what you might be thinking to yourself at this point. You’ve heard horror story upon horror story of the damage credit cards can do. Throw these fears aside though because we are going to tackle credit cards in a safe and effective manner that will benefit you.
To begin we’re going to need a credit card. I would recommend getting this card from your credit union, bank or wherever you keep your cash. This is because these cards are normally secured, obtainable with no credit, and don’t have annual fees. If your place of banking doesn’t offer a card that meets these criteria seek one out. Once you have the card it’s just a matter of making smart purchases. Mainly purchases you were going to make anyways. Say you need some groceries or are looking to buy a new gaming console. Being that you already have the funds for these items purchase them with your credit card and set yourself a payment reminder. Being that this money was already in your possession, you’ll be able to pay off the bill and watch your credit score climb.
This second method might not be as easy starting from no credit, but with some help from a family member or another trusted individual can be effective nonetheless. Here you don’t need to have a credit card and will just need the help from a trustworthy co-signer.
Say you’re looking to buy a new car and take out a loan to purchase the vehicle. Here your trustworthy individual comes into play to help co-sign on the loan and increase your chances of getting the loan you need. Though now, you’re stuck with the pesky car payment. This isn’t necessarily a bad thing though. Similar to the credit card making your monthly payments on these loans will also increase your credit score. It doesn’t have to be a car either. Students loans could also work to help you increase your credit. Just make sure you’re making your payments and you’ll see your credit score climb.