The Credit Challenge

There are many students or individuals who have gone bankrupt in the past that are now looking for ways to obtain a credit score.

It is really not that difficult to obtain a credit score even if you don’t already have one. 

Here are a few tips that I usually give to my customers to help them obtain a credit score.

1. Become an authorized user - this is one of the absolute quickest ways to get a credit score.  All you have to do is ask your spouse, family member, or friend if they would add you as an authorized signer on their account.  You will then get the benefit of their payment history on that account.
2. Apply for a secured credit card – if you have an account with a bank, they often offer secured credit cards, which require a deposit for the amount of credit they extend to you.  It is much easier to qualify for this type of account because the bank has some kind of security that you will pay; your deposit!
3. Report utility bills – this one is simple.  Simply get the payment history for your utility bills and send them to the credit agencies.   If you have a good payment history, these accounts will get you scored quickly.
4. Apply for a personal loan- you may be scared off by the high interest rates in the double digits, but make sure you only borrow a small amount so you won’t be trapped with high payments.  This will give you credit, and will establish the basis of future credit from other places.
5. Purchase with a co-borrower – although you may not have the credit needed for a purchase, you can purchase with someone else and get your foot in the door with credit. Since the co-borrower will help you qualify for the loan, you will now use that loan to get a credit score.

Just because you don’t have credit or a credit score does not mean that you are doomed.  There are many options for you to obtain a credit score, and also credit in general. 

The first line of credit may be slightly more difficult or expensive, but you are paving your way to a strong credit score and opportunities to establish your credit worthiness for your lifetime!