RICHMOND, Va. (WWBT) - If you are looking to build your credit score, here are some helpful tips on accomplishing the goal.
- One way to build up your credit is to become an authorized user on someone else’s card. Lexington Law says this is a good option if you are too young to get a line of credit, or if you don’t qualify under the CARD Act of 2009.
- Pay your bills on time - all of them. That means your mortgage or rent, cell phone bills, student loans and utilities. Thirty-five percent of your credit score is made up of payment history.
- Take out a credit building loan. This is different from a traditional loan. Instead of receiving the money up front and then paying it back, the amount that you borrow goes into a certificate of deposit account. It’s a way to established a decent payment history to help improve your credit score.
- Finally, other types of loans help your credit score, such as student loans and auto loans. Just remember, each one requires a hard credit inquiry that can knock your score down a few points.
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