You must have often wondered about how to repair credit yourself and even followed DIY credit repair tips and strategies to improve your credit card scores. Well, building or improving existent credit is fairly easy as compared to building credit history from scratch. After all, how can one build credit history without a credit card?
This means in order to build credit history or even to qualify for one, being in possession of a credit card is very important. Starting from the bottom can prove to actually be fruitful in your quest to improve credit score, if you keep in mind the following;
Factors That Influence Your FICO Score
When it comes to figuring out your credit score, the model often used is the FICO. Essentially, the FICO is made up of 5 factors:
- Payment History (35%)
- Credit Utilization (30%)
- Length of Credit History (15%)
- Types of Credit in Use (10%)
- New Credit (10%)
Understanding the Guidelines for Building Good Credit
Lenders determine your financial trustworthiness by viewing your credit score, which is why making a habit of the following will help build credit score and prove your credibility.
- Always make your payments in full, whether of credit accounts or others, such as utility bills
- Always keep credit card debt low. Not possible? Take help from these DIY credit repair tips
- Use credit cards regularly and try to keep accounts open for as long as possible
- Refrain from opening too many accounts at the same time
- Make use of our free credit reports feature and get in the habit of reviewing them annually for errors and discrepancies
Knowing How to Check Credit Reports and Scores Is Important
Make use of the FACTA that entitles consumers to one free credit card report annually from each of the 3 bureaus. You can also get a free credit report from Quick Credit Repair as well as tips that help make sense of the report. Here’s a guide on how to read credit reports to help you get started.
Apply For A Credit Card for No or Low Credit
Once you learn how to read a credit report and the other factors that are important for building a good credit score from scratch, it’s time to actually start the process of building credit. For this, you will have to open a credit card account, for which, the options are;
- Apply for a secured credit card
- Get a co-signer on an unsecured card
- Become an authorized user
Deciding what option is ideal for you can prove to be slightly difficult, but not to worry, as our experts are ready to answer any question or query regarding this matter.