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Are you one of the many Americans out there who have bad or limited/no credit? The unfortunate reality of this is that these consumers 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 people as well! Worst of all, employers often times look at FICO ratings before hiring people. So, if you are like the quite a few people who have limited/no or bad FICO 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 scores 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 credit ratings. Other options like extreme options like purchasing a car from a buy here pay here have also been noted as great ways for consumers to improve their credit ratings. However, I have found a way for people to build FICO ratings without going to extremes in about 12 months! Do you want to know the secret? Well, before I can let consumers know the secret, I feel as though it is important that I explain to them how credit works. Years ago, Americans could get a loan with a good handshake and a wink of the eye. However, because quite a few people didn't pay on these loans, the banks started to loose money. Looking for a better way to judge the risk of lending to consumers, 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 consumers who are trying to take out a loan. These credit reporting agencies would give Americans scores based on their borrowing habits. With that said, to have good credit, Americans must also have debt. If consumers don't have debt, how would lenders know how Americans would react to debt in their current financial situation? Well, if you are one of the many consumers who would like to build their FICO ratings, 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 scores, 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 Americans use secured charge cards, 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 scores. 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 credit score will all lead to great FICO scores 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 Compare Credit Cards
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