7 ways to Improve your credit

Dated: 06/09/2019

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What does it mean to build better credit

Building credit means consistently demonstrating your ability to pay back any money you borrow. Your goal is to prove to creditors and lenders that you can responsibly manage debt.

1. Open a Bank Account. For those who have bad credit, opening a bank account may be easier said than done. ...

What does it take to get a bank account?   When opening an account in person, most banks require two forms of identification such as a Social Security card, driver's license, state ID, passport or birth certificate. If you are not a U.S. citizen, you may be able to open an account with identification issued from your home country.

2. Get a Secured Credit Card. ... This can help you build a credit history, improve your credit health and eventually upgrade to an unsecured no-deposit card. As the name implies, a secured credit card is secured by money that you deposit with the issuer. An unsecured card requires no cash deposit. ... However, some deposits don't earn a penny of interest.

  • Types of secured credit cards: Capital One® Secured Mastercard® : Best for Low deposit.
  • Discover it® Secured. : Best for Rewards.
  • OpenSky® Secured Visa® Credit Card. : Best for Bad credit or no bank account.
  • Digital Federal Credit Union Visa Platinum Secured Credit Card. : Best for Low fees and interest.
  • If you're building your credit score from scratch, you'll likely need to start with a secured credit card. ...
  • Apply for a credit-builder loan. ...
  • Get a co-signer. ...

credit-builder loan holds the amount borrowed in a bank account while you make payments, building credit.  credit-builder loan is designed to help people who have poor credit or who have little or no credit history build credit. A good score makes approval for credit cards and loans, at better rates, more likely.

3. Obtain an Installment Loan. ... an installment loan is a loan for a specific amount of money that is repaid with interest through a series of fixed monthly payments. The interest rate may depend on the financial history of the applicant and loan size and repayment terms can range from a few months to over 30 years.  

 Like we mentioned earlier, with an installment loan, you agree to pay a fixed monthly payment over the length of the loan term. So, for example, if you borrow $10,000 for a five-year period at a 6% interest rate, you would pay $193.33 a month for 60 months (or installments). Contrast this with a revolving line of credit, like a credit card, where borrowers have a set limit that they can pay back and re-use over time.

To determine the interest rate or whether you qualify at all for an installment loan, a potential lender will look at your credit score, your annual income and your debt-to-income ratio. Lenders look at this ratio to see how much you can responsibly afford to borrow in a potential installment loan.

4. Pay Your Student Loans. ...There are several options for payments to include payment plans, deferments

5. Become an Authorized User on someone else’s card

6. Avoid Prepaid Cards. These are trouble

7. Improve Your Habits.  Look at your spending and consider if it is absolutely necessary expense.  If you can consistently change one spending habit and apply those funds to other places you can make small efforts toward big steps. 

These are just a few suggestions.  Please seek the advice of a financial professional so to ensure all of your specific financial needs are met.  I am a Realtor.  I bring people together for housing transactions.  The items mentioned in this blog ar suggestions and not the end of all answers.  Good luck, friends. Money for the house

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Adriane Hatfield

"Rocky Top, You'll always be home sweet home to me....Good Ole Rocky Top... Rocky Top Tennessee!!!"Those words have help shaped the spirit of Tennessee and it is with that spirit that many have recogn....

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