Are you a college student just getting started on your own? Or maybe you’ve just never applied for a credit card or loan? Either way, having no credit can be a hassle and building it from nothing can be a long process. And sometimes, you may need to get that score up sooner rather than later. So, here are a few ways to give your credit an immediate boost.
Become An Authorized User On Someone’s Account
If you have a friend or relative with good credit, ask if they would add you to one of their accounts as an authorized user. This allows you to share their credit score, which in turn, boosts your credit. It also gives you an opportunity to apply for your own account so that you can build your credit independently. It’s a win-win!
Co-Signers Are The Next Best Thing For Those With No Credit
Speaking of building your credit independently, another option to help get your credit off to a good start is to get a co-signer. Instead of being added to someone else’s account, that person is being added to yours. Their good credit will allow you to get a loan or credit card, and with lower interest rates too! Again, just be sure you both have a clear understanding of how things will work out since your actions with this account will impact their score.
Try A Secured Credit Card
Did you know there are actually ways to get approved for a credit card or loan with no credit? Lender and banks created secured credit cards specifically for those who have no history. A secured credit card requires you to put down a deposit to create a balance on your card. Then, you can make charges up to that balance. In this sense, it’s similar to a debit card for your checking account.
However, you make monthly payments to get your balance back to your deposit amount. Until you do, your remaining charges accrue interest. Why get a card that requires you to make payments on a deposit you already made? Because, unlike a debit card, secured credit cards build your credit score quickly, with you banks regularly reporting your history to the credit bureaus. Plus, you have a better chance of being approved for these cards than with traditional credit cards.
While these options do help to boost your credit score in the short term, there are other methods to help increase it over time, especially when you’re preparing to apply for an auto loan or unsecured personal loan. Check out this article on other ways to get your credit score to its best.
Whether you have credit built up or not, our financial partners here at BlueSky Auto Finance can help you explore your auto financing or personal loan options. Visit us online and let us help you get started!