Are You Credit Invisible? 3 Easy Ways to Build Your Credit
Are you credit invisible? You're not alone - one in every ten adults is. There are several ways to start building your credit such as secured credit cards, credit builder loans, and retail store credit cards.
Did you know that one in every ten adults are credit invisible? That means 26 million Americans don't have credit score or any credit history with one of the three nationwide credit reporting companies.
Here is a pro tip to build credit.
Secured Credit Cards. This is like a traditional credit card, except you deposit an amount of money $50 to $300 dollars into a separate account and the bank extends a credit line matching the deposit amount that you made. After establishing a pattern of consistent payments, many secured cards allow you to move to a traditional credit card. Banks typically report to the credit reporting companies about card activity, so you can build credit with its use. But be sure to ask your card issuer.
Number Two credit builder Loans. This is when banks typically credit union deposit a small loan, often $300 to $1,000 dollars into a locked savings account. You pay the institution back with small dollar payments over 6-24 months, and these payments are reported to the credit reporting companies. Once you come to the end of your loan term, you receive the money back in total. These loans are great for building credits and savings that can be used however you like.
Number Three retail store credit Cards. Many gas stations, department stores, or retail chains offer credit cards that tend to be easier to obtain and typically offer lower credit lines. This combination makes them a great option if you are looking to build up a thin credit record that you can fatten up later. Contact New American Funding today to learn about your home buying options.