How People with No Credit or Low Credit Can Improve Their Credit Scores

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You can improve your credit score by following a few simple steps. Your credit card score is a number that estimates the owner’s (of the card) financial decisions. A credit card score will show the creditworthiness of an owner. The credit card score is usually a number between 300-850. 300 to 629 is regarded as a bad credit score, 630-689 is regarded as a fair credit score, 690-719 is regarded as a good credit score, and finally, 720-850 is regarded as an excellent credit score.

Your credit card score is extremely important because it can determine if you get an apartment, if you can purchase a car and if you can apply for a loan. Your credit card score can keep you from getting a great (annual percentage rate) APR. For those who are unaware, your APR includes your interest rate and the cost of procuring the loan.

In these unprecedented times, many people need money to get back on their feet or meet up with their bills. Unfortunately, they may have a bad credit score, or they may be unwilling to get another credit card. Bad credit scores are not always a result of poor spending. Sometimes a bad credit score is a result of short credit history or financial mistakes. In this article, we’ll be sharing how people with no credit or low credit can improve their credit scores.

  1. Build Your Credit File –  Your credit file is a file that contains your credit history. By building a file and having a long history, you’ll have a better chance of increasing your credit score. You can do this by opening accounts that will be reported to the top credit bureaus. If you have several accounts open and are active on them, you’ll be able to show that you are a good borrower who can pay back loans.
  1. Don’t Skip Payments – To build your credit score, you’ll need to have consistently paid on time. Don’t skip your payments, no matter how tempting it may be. If you have payments to make, ensure you make them at the right time. If you miss your loan or credit card payments by over a month, you might get reported to the credit bureaus, which will reduce the credit score you’ve worked so hard to increase. You should also make frequent payments.
  1. Use a Credit Builder Credit Card – A credit builder credit card is a card that is made to help people with no credit or people with low credit. You can apply for a credit builder credit card if your income isn’t high enough for the credit card you prefer. You can apply for a credit builder credit card if you have a poor credit score, and you can apply for a credit builder credit card if you’ve never had a credit card before.

Credit builder cards will offer you a low credit limit; however, they also have a high (Annual Percentage Rate) APR. Your APR will get lower in time as long as you’re making your payments on time. Good handling of your credit builder card will help you improve your credit score and can also help you increase your low credit limit. Some credit builder cards are the  Nexo Card, the Gemini Credit Card, and the Bitpanda Visa Card.

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