How to Build a Good Credit Rating Score With These Simple Techniques
Previously we discussed on what is a good credit score and we have been receiving some positive feedback about the topic. Therefore, in today’s article, we will be sharing with you on how to build a good credit rating score with some simple strategy that you can apply today!
However, you need credit to actually build your credit score. If you are trying to get a loan to build credit, here are some strategy that you can use to build a good credit rating score:
Strategy 1: Peer to peer loans (Social Lending)
It is also known as social lending which means that lending websites link borrowers to private investors. We recommend you to try to apply for these type of institutions. You are able to secure loans on fixed terms for approximately three years.
The investors then look into the loan packages and will only bid if they think that the deal is good.
The lending sites then report about your credit activities. If you are showing yourself to be trustworthy and you are timely with your payments online, this will help to increase your credit score.
Strategy 2: Apply to get a Secured Credit Card
If you are not able to get yourself a normal credit card, the next best option for you is to get a secured credit card. Most of the time, you will need to make a deposit about 200 dollars. This will give you a credit limit of the same amount.
The advantage of getting a secured credit card is that you cannot exceed your credit limit. This is good if you are those that use the card often, then repay it on time so you can gain more credit-worthiness by paying regularly on time. You will be able to build a good credit rating by using this method.
However, if you are using this method, it is best that you don’t exceed thirty percent of your limit. This will help you to gain maximum credit building. Also, you need to make sure you make payment in full or before the due date.
Strategy 3: Apply for a charge card
If you have a good credit history, but you don’t like credit cards then it is best that you consider a charge card like American Express.
By having a charge card, you are required to make payment in full every single month. There is a huge benefit of using charge card as they do not dent your credit score even if you exceed a certain percentage of your credit limit. This is known as credit utilization.
If you apply any of these 3 strategy, we are confident that you are able to build a good credit rating score. Feel free to leave a comment and let us know what you think about this topic. Also, if you have any question, feel free to contact us!