Everyone’s been through their credit card woes. Your score constantly going up and downs just because you were late on a monthly payment. It’s easy to fall off track, and let your score slide. That’s why we need to constantly keep up to date with all our credit reports, payments, and credit utilization. Having a great report can set you up for success for the future, especially with building wealth.
1. Credit Karma/Credit Sesame
We can’t fix our credit without first knowing what our credit score is. Credit karma is a credit monitoring app, that allows you to get a rough estimate of what your credit report is. It’s not always totally accurate, but it does the job. Credit karma also shows you how much your credit score would increase if you paid down some or all of your debts. It’s a great way to start off keeping up with your credit. There’s also tools on credit karma that can check to see if you would get approved for a certain card. This could possibly boost your score up by a lot of points. Credit sesame is similar to credit Karma as to where they grade your credit card performances from A to F. When I started building credit I used both of these apps to my advantage and I checked them almost every day. Here’s a link to sign up for credit karma. You can sign up online and through their apps.
Having zero credit makes it hard to get a credit card in the first place. A lot of people say “ you build credit go get a credit card it’s easy!” But…. It’s not that simple, some people weren’t lucky enough to start off with at least some type of credit. So they end up not establishing credit at all, and that’s a problem! We need credit for things like renting a house, or getting a phone, or buying a car. You need some type of credit. If you out there reading this post on credit, continuing reading you might find something useful. Luckily or me I was recommended fingerhut, a credit card company and shopping website that gives credit to those with bad credit. With a 580 credit score I was able to get a credit line of $500 to start off. This helped tremendously, because I was able to establish some credit. There’s other credit card companies that may offer you a credit line even with bad credit, you just have to go out there and search!
3. Get up to 3 credits to establish credit
Now that we have one credit card, we have to create multiple credit lines to have more credit history. It’s important that we keep the balances low on these credit card. You want to keep all balances and credit cards under 30 % utilization. For example if your credit line is $1000, you want your balances under $300. This will allow your credit grades to be high. For some card companies, if you have bad credit you may have to pay a deposit to open up a credit line. Don’t be afraid to do so, you end up getting your money back if you cancel you credit with them anyway.
Self helps you save move while building credit at the same time. One interesting thing that it does in particular is that it give you a different type of credit line. More like a personal loan, so you get a mix of credit which Is great because it increases your score. For one it’s good for credit newbies who have bad credit. Two your saving money with every payment you make. Three it’s roughly $9 to start. Once you pay off the personal loan, which you can choose how much you want to pay (I chose to pay $48 monthly for 12 months equaling $500), you get all your money bank. Plus they put your money in a CD so that it makes interest! This is a win win situation, if you want to sign up I highly recommend it. You can use this link to start using self! https://self.inc/refer/13277669. Using these methods will help you in your quest to a 850 credit score! If you have any more questions, leave a comment below and I’ll be sure to respond right away. I want to see you succeed in life, and why not do it together!