How to Build Credit

Posted August 14, 2024

Using credit cards is one of the best and quickest ways to build credit.

But if you’re rebuilding your credit score or if you have bad credit, it can be difficult to get approved for a credit card. You will need a secured card. A secured card is backed by cash deposit you make in advance, the deposit amount is usually the same as your credit limit. The minimum and maximum amount you deposit varies in the card.

Majority of cards require a minimum deposit of $200.

The card will be use like other credit cards. Make purchases, make a payment on or before the due date, interest will take place if you don’t pay the balance in full.

The secured card is used to build your credit to qualify for unsecured card without a deposit with better benefits. Select a secured card with a low annual fee making sure payment data being reported to all three credit bureaus, Equifax, Experian and TransUnion.

Building a good credit score takes time and a good history of payments on time.

Use these good credit habits to build your score:

· Try to pay on time and pay at least the minimum.

If you can pay more the minimum, it will benefit your score.

· When you use credit cards, keep credit utilization low, utilization is the percentage of the credit you use. Keeping your credit utilization below 30% is recommended and it better for your score. 

For more information click on the link. https://www.creditbuildercard.com/berryscreditfix