|
Are you one of the quite a few consumers out there who have bad or limited/no credit? The unfortunate reality of this is that these people will have hard times finding loans at all let alone one with a good interest rate. Getting a car may be a problem for these Americans as well! Worst of all, employers often times look at credit scores before hiring Americans. So, if you are like the several Americans who have limited/no or bad credit ratings, chances are you are looking for the fastest ways to improve your score! I have done quite a bit of research on the matter of building credit ratings and have found multiple options. Some options take a slow and steady approach like opening utilities accounts and getting a cell phone, paying them on time, and eventually after years, you will have better FICO ratings. Other options like extreme options like purchasing a car from a buy here pay here have also been noted as great ways for Americans to improve their FICO scores. However, I have found a way for Americans to build credit scores without going to extremes in about 12 months! Do you want to know the secret? Well, before I can let people know the secret, I feel as though it is important that I explain to them how credit works. Years ago, consumers could get a loan with a good handshake and a wink of the eye. However, because several Americans didn't pay on these loans, the banks started to loose money. Looking for a better way to judge the risk of lending to people, credit reporting agencies were formed to provide tracking and loss management to lenders. These systems would allow lenders the ability to see the last few years of borrowing history for people who are trying to take out a loan. These credit reporting agencies would give consumers ratings based on their borrowing habits. With that said, to have good credit, consumers must also have debt. If people don't have debt, how would lenders know how consumers would react to debt in their current financial situation? Well, if you are one of the quite a few people who would like to build their FICO scores, although I hate saying this, it's time to get some debt! THE BIG SECRET Remember, I told you I would give you the big secret to building credit ratings? Well, here it is...If people would like to improve their credit ratings, they should take out a new secured credit card account. Secured charge card accounts require consumers to place a deposit with the lender before they are used. This deposit then becomes the consumer's credit limit. So in essence, when consumers use secured charge card accounts, they are simply borrowing their own money. This process alleviates the lenders of the risk involved in lending to these people with lower than desirable credit ratings. Once consumers who would like to build their credit get their secured charge card accounts and place their deposit, they should take all steps to use that credit card account properly. Steps like making early payments, paying more than minimum payments and not spending more than 50% of the credit limit allowed on a FICO score will all lead to great FICO ratings for people. For more information on how consumers can use charge cards properly for credit building purposes, I would suggest visiting JEMCreditCards.com! This article is brought to you by: JEMCreditCards.com: Skymiles Credit Card Offers What Is The Best Credit Card
Related Articles -
credit card, credit cards, credit, credit score, credit scores, credit rating, credit ratings, fico, fico score, fico scores, fico rating, improve cre,
|
