How To Build Credit

Building credit and maintaining a good credit history are key steps towards building your financial future. At first, credit may seem frustrating — you can't get credit because you’ve never had credit. But there are actions you can take to start establishing a strong credit history. If you've always paid with cash or checks to make purchases and haven't used credit, it's a good idea to start. You may need good credit for such routine matters, such as having utilities connected to your home.

Good credit is important to secure financing when buying furniture, a computer, a car, or even a new home. Employers often check the credit rating of prospective employees. Renting an apartment may be easier, as a good credit rating tells landlords that you are a person who's more likely to pay the rent on time each month. If you need a loan, banks may look more favorably upon you if you have a good credit history. A credit card may be a good way to start building credit.

You can use your credit card to make purchases, and they are very convenient. One way to start a credit history is to have one or two department store or gas station cards. Once you start using credit, it’s essential to manage it properly. So use your credit card to make purchases, but don’t go over your credit limit or let your balance owed get too high to manage.

Pay at least the minimum payment due each month, or more if you can, and make sure you pay on time. The best way to reduce the interest owed on a credit card is to pay off the balance as quickly as possible. Otherwise, it can take many years to pay off even a small credit card balance if you only make minimum payments.

If you follow these tips, you can build a strong credit history that will help you meet your financial goals. We’re committed to helping you achieve financial success. Here you’ll find a wide range of helpful information, interactive tools, practical strategies, and more — all designed to help you increase your financial literacy and reach your financial goals.

I looked at some of the top credit repair services and tested them out for all of these criteria, and these were my favorites. SkyBlue is the most affordable and reliable credit repair option that I looked at. 59 initial payment, which is far and above cheaper than all of the other credit repair services.

Here is a more detailed breakdown of the cost. BBB, which is the best score I've seen from a credit repair company. SkyBlue is one of the only credit repair services that offers a full 90-day refund no matter what the reason, which is unheard of in credit repair. The Credit People offer a similar service to SkyBlue.

19 for its initial service. 299 upfront for 6 months of service, which a nice savings. The Credit People also offers the basics when it comes to credit repair. 19 to try out the service. Here is a complete The Credit People review to give you a better idea of the service.

The Credit People is the only other credit repair service that offers a 100% money-back guarantee at any time for any reason you are not satisfied. The best part about Lexington Law is that it is an actual law firm that specializes in credit law, which means they know what they are doing when dealing with lenders.

It also has an "A" rating from the BBB, and has been around longer than most other credit repair services. 99.95 initial fee, which includes all of the bells and whistles that come along with their credit repair plan, including a guarantee. The best part about Lexington Law is they doesn't charge you anything until they've completed all the work that they agreed to. You can also check out a Sky Blue vs. Lexington Law comparison of services here.

They also have an "A" rating from the BBB. 89.95 a month, although they don't have an initial fee like most other credit repair services. 89.95, you get your standard credit repair services, as well as monthly credit monitoring, a score tracker and analysis, mobile apps and text and email alerts.

This language is worded very carefully, so buyer beware. Lexington Law when it comes to services. If you have legitimate errors on your credit report: The main function of any credit repair service is to remove errors from your credit report. These could range from errors in reporting from lenders to simple errors in your personal information.

A good amount can actually effect your credit, so if you believe there are errors in your credit report, you can benefit from one of the best credit repair companies correcting those errors for you. If you have errors that can't be verified: A little known fact about your credit report is that every detail in the report needs to be verifiable. No. Some lenders don't like working with credit repair services. Some lenders aren't willing to negotiate. However, for the lenders who are willing to listen, this is a good way for credit repair services to raise your score.

Want to pay all your bills with one check, Debt consolidation may be the answer. It's not a loan or bankruptcy but a program, run primarily by nonprofit organizations, that helps reduce interest rates, eliminate late-payment fees and lower payments. That's a pretty attractive idea, considering it takes the average person 10 to 20 years to make credit balances disappear. However, participating in a consolidation program could affect your ability to get new credit or a loan because some creditors will put a red flag to lenders on your credit report. Talbert Williams offers debt consolidation referrals and advice.