Tips To Assist People With Building Credit Scores
It is no secret that FICO scores are extremely important to people these days. When it comes down to it, we no longer live in an age where people getting a loan is as simple as walking into the bank with a firm handshake. These days, lenders look at the credit history of people before they are willing to loan them money. With that said, if you are looking for a loan but, have bad or limited/no credit, chances are you are looking for the fastest way to increase your FICO score.
As I did my research, I found many websites that told consumers to build their credit slowly and steadily. Many of these websites tell consumers that the best way to build credit is for consumers to get a cell phone or utility bill using their identifiable information. However, this process can take 3 to 5 years before it actually has any improvement on the FICO ratings that people carry around with them. If you are like most consumers, you don't have 3 to 5 years. Most consumers want to build their FICO ratings quickly.
This lead me to do a bit more research on FICO scores. What I found was that Americans don't have to wait 3 to 5 years for good credit. As a matter of fact, if done properly, people can have good credit in as little as 12 months! So, I bet you are wondering how this all works. Well, let's look into credit ratings a little further together.
When Americans really understand FICO scores, they understand that credit scores are based on how people react to past debts. Therefore, without having any debt, it's almost impossible to have good credit. With that said, cell phones and electric bills just aren't enough for consumers to show banks how they would react to credit and debt.
When I thought about this, I started to think of how Americans could obtain a loan for the purpose of building their credit ratings. The answer was secured charge card accounts! Secured credit cards are specialty credit cards that are designed for Americans with bad or limited/no FICO ratings. When consumers get a new secured credit card, they must first place a security deposit with the lender. This security deposit once placed will then become the credit limit given to people. So, using secured credit card accounts, Americans borrow their own money alleviating the bank of any risk.
I know what you may be thinking, "I need credit to borrow a banks cash, why would I want to borrow my own". Well, when we go back to looking at credit ratings, we know that Americans must have had debt or revolving credit to have good credit ratings. Therefore, by people using secured credit cards to borrow their own cash, they are showing banks and credit reporting agencies how they will react when a credit line is extended to them.
If consumers choose to use secured credit card accounts to build their FICO ratings, it is important to use the secured credit card accounts properly. After about 12 months of proper use of secured charge card accounts, Americans will be refunded their security deposit and their credit card will then become an unsecured charge card account. This is the point in which Americans find astonishing increases in their credit scores!
I hope that this article has answered all of your questions, please come back to read more of my work!
As I did my research, I found many websites that told consumers to build their credit slowly and steadily. Many of these websites tell consumers that the best way to build credit is for consumers to get a cell phone or utility bill using their identifiable information. However, this process can take 3 to 5 years before it actually has any improvement on the FICO ratings that people carry around with them. If you are like most consumers, you don't have 3 to 5 years. Most consumers want to build their FICO ratings quickly.
This lead me to do a bit more research on FICO scores. What I found was that Americans don't have to wait 3 to 5 years for good credit. As a matter of fact, if done properly, people can have good credit in as little as 12 months! So, I bet you are wondering how this all works. Well, let's look into credit ratings a little further together.
When Americans really understand FICO scores, they understand that credit scores are based on how people react to past debts. Therefore, without having any debt, it's almost impossible to have good credit. With that said, cell phones and electric bills just aren't enough for consumers to show banks how they would react to credit and debt.
When I thought about this, I started to think of how Americans could obtain a loan for the purpose of building their credit ratings. The answer was secured charge card accounts! Secured credit cards are specialty credit cards that are designed for Americans with bad or limited/no FICO ratings. When consumers get a new secured credit card, they must first place a security deposit with the lender. This security deposit once placed will then become the credit limit given to people. So, using secured credit card accounts, Americans borrow their own money alleviating the bank of any risk.
I know what you may be thinking, "I need credit to borrow a banks cash, why would I want to borrow my own". Well, when we go back to looking at credit ratings, we know that Americans must have had debt or revolving credit to have good credit ratings. Therefore, by people using secured credit cards to borrow their own cash, they are showing banks and credit reporting agencies how they will react when a credit line is extended to them.
If consumers choose to use secured credit card accounts to build their FICO ratings, it is important to use the secured credit card accounts properly. After about 12 months of proper use of secured charge card accounts, Americans will be refunded their security deposit and their credit card will then become an unsecured charge card account. This is the point in which Americans find astonishing increases in their credit scores!
I hope that this article has answered all of your questions, please come back to read more of my work!