HOW DO I BUILD CREDIT HISTORY?

For people who are new to credit and trying to build a good credit history, there are many different options.

  • Apply for and open a new credit card. Since you do not have credit history, you may either receive good terms, or you may be saddled with a high APR. It’s also possible that it may be difficult to find a credit card company that will approve you due to your lack of history. If this is your situation, then we can help you can look into a secured credit card.
  • Open a secured credit card. This can help you establish your credit history if you are unable to go the traditional route with credit cards. This type of card requires you to deposit money with the credit card company the way that you would with a bank. After the initial deposit, you are able to post charges up to the amount you have deposited. This is often a good option because secured credit cards rarely turn applicants down. Make sure to pay attention to their terms and fees as they may be high due to your lack of history.

Whether you decide on a traditional credit card or a secured credit card, it’s crucial that you keep your balance low, and make a timely payment each month. You will be on your way to a great credit history.

WILL SPENDING LESS AND SAVING MORE IMPROVE MY CREDIT SCORE?

Putting money aside in savings is a great idea, and one we encourage you to do. Your savings won’t necessarily have any impact on your credit score. Credit scores don’t recognize the amount of disposable cash you have on hand.

Your credit score improves when you spend less on credit cards, because your outstanding balances shrink.