Tricks on How to Achieve a Free Credit Score and find a Good Credit Card

Having a good credit score will make your life easier, especially when applying for loans, mortgages, and even when looking for apartments. Unfortunately, building your credit score can be overwhelming if you are starting from scratch or have bad credit. It takes up to 6 months or more of on-time payments reported to credit bureaus like Equifax, Trans Union, and Experian. But how do you get credit to repay if no one will offer it in the first place? There are various ways to go about building a credit score that will eventually allow you to find better credit. However, you need to understand how each system works before engaging… otherwise, you risk worsening your score. 

 

Below are a few insights to help you achieve free credit score.

Apply for secured credit

A secured credit requires a specified deposit used as collateral in case you fail to make repayments. The credit is usually not more than the deposit. One great thing about secured credits is you can enjoy low interest rates and flexible repayment schedules. The deposit is also refunded once you complete paying the credit. You can take secured credit to help build your score with credit bureaus and improve your prospects of qualifying for no-deposit credits.

Use credit builder loans

Credit building loans are another option for getting free credit score. Essentially, a lender gives you a loan that is held in an account and not released until you finish making repayments. Since you have no access to the loan until payment is completed, you can enjoy flexible repayment schedules and low installments. All payments are also reported to credit bureaus as on-time payments helping you build your score in the process.

Find a co-signer

Co-signers can help you secure good credit and if you pay on time, then your score will increase. A co-signer basically acts as your guarantee and agrees to repay the loan if you fail to. Make sure you both understand how it works and the implications on both credit scores.

Use someone else’s credit as an authorized user

You can always use another person’s credit card to take credits and make purchases and repayments. All you need to do is make sure the credit issuer reports the activities of authorized users to the bureau. Although you are not legally obligated to make repayments for credit taken with another person’s card, it is important to pay your share if you want to build a good credit score.

Use rent reporting service

Rent is one of those payments most people make on time. Other renters automate the system so the rent is directly deducted from your bank account. You can find services that report rent bills to the bureau. These payments can boost your score and help you qualify for good credit.

Installment purchase stores

There are various stores and retail shops that allow you to purchase different household and office items by making a small deposit and paying the rest on installments. Since you already have need for the products, it will be a less daunting way to invest while building your score. Some retailers even have their own credit cards. You can apply for a Fingerhut credit card and use it to purchase any of their 450,000+ products on installments. The payments are reported to the bureaus so they end up improving your score if you make payments on time.

Getting good credit can be very hard if you have a lower score or have no history. It takes good practices and consistency to build your credit score to a point where you can qualify for good credit without the restrictions of secured credit or score building loans. To improve your situation, practice paying all credits on time, keeping your credit usage low and avoiding unnecessary credits. You should also monitor your credit reports for errors that are tarnishing your score. Simply avoid those things that hurt your score and you will soon be good to qualify for some

of the best credit cards available in the market.