Take Your Credit From Nothing to Something With These Simple Steps
Credit is a funny thing: the better your credit is, the more credit opportunities you get. PennyGem’s Justin Kircher has some ideas to build up your score.
Category
📚
LearningTranscript
00:00 (music)
00:04 Credit is a funny thing. The better your credit is, the more credit opportunities you get.
00:08 But how and where do you start? Money Talks News says you can become an authorized user on a trusted friend or family member's credit card,
00:15 but only do it if they have a high credit score themselves. The site says another way to build up your credit is to get a secured credit card.
00:22 In contrast to a traditional credit card, you have to make a deposit with a lender, and your credit limit is then usually based on the funds that you've supplied.
00:29 After a period, though, and good payment history, a lender could opt to refund your deposit, and the plastic will effectively turn into a more traditional credit card.
00:38 With 35% of your FICO score coming from your ability to pay your bills on time, LendingTree says maintaining a flawless or nearly perfect payment history will boost your credit.
00:47 Money Talks News says that another 10% of your FICO numbers come from your credit mix. No, not some mixtape of slow credit jams, but rather the types of debt you have.
00:57 The site recommends applying for a personal loan that you can easily take on to show creditors that you can handle different debts, which should boost your credit rating.
01:05 (upbeat music)