Best ways and ideas to build your Credit

I’ve been in the auto industry for over a decade now and it blows my mind how little the general public understands credit and how important it is in our daily lives. Here are a few ideas to help build your credit and make life easier. Now I’m just a guy and this isn’t professional financial advice.

Building credit isn’t a fast process, but there are ways to speed it up.

There are three main bureaus Transunion, Equifax, and Experian.
– Transunion is generally considered the most useful. ( Midwest)

1. Be aware of your score. Best places to monitor this:

– Credit Karma
– Mint
– most credit cards will have a basic one online.

2. Start with a prepaid or secure credit card from a local credit union.
– Will take roughly $300-500 to start and will count on all 3 credit bureaus.

Don’t apply to many places for credit. Each lasts on your record for two years. You never really want more than 5-7 on your credit at any given time and the fewer the better.

3. The easiest credit lines to get once you have your secure credit card are stores like Kohls or Old Navy. Don’t apply right away wait 4-6 months to build up a few positive payments from your secured card. Adding to that go to a Rent a Center or equivalent the least they finance is generally around $300 that’s six $50 payment and boom a perfect paid loan and trade line. (I got a soundbar)

You want trade lines that’s your payment history building up. Usually a person needs a mix of 8-10 trade lines to start being considered established or worthy for larger amounts.

4. Never have your revolving credit be more than 30% of your total credit available. Meaning if you have $1000 between all your credit cards don’t spend more than $300.

5. About every six months call your credit companies and ask for a credit line increase. The higher you can build your credit generally the better off you are. It also becomes easier to get credit if you have higher limits on the cards you already have.

6. This is probably the biggest and easiest one. AUTOMATE everything set it up so that it automatically comes out every month on time. We forget shit and even one negative month and screw your score up for a long ass time.

7. Respect your score its how the world judges you. We are just a walking algorithm don’t forget that and make smart financial decisions.

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