What’s The Best Way To Build Credit

There’s not one best way to build credit. In fact there are multiple ways to build credit. Below are several different ways that you can build credit. These are some of the easiest ways to do it. But ultimately it is your decision because you know your situation better than I do.

Best Way To Build Credit Instantly

What I am about to reveal to you is one of the best ways to establish credit. In fact you can get an instant credit history with out even applying for any credit what so ever.

This method does come with some risks which I will explain.

This method is what I call piggy backing credit. The way that it works is by getting yourself added to friends or family member’s credit accounts. These accounts may be credit cards, personal loans, car loans or even student loans.

All that needs to happen is your friend or family member simply adds you to their account or accounts. All they need to do is call the creditor with your information. They will need your name, address, phone and social security number.

Once you have been added to the account as a joint credit holder you will instantly get all the credit history for every account they have added you to. For example if they have had a credit card for 5 years and the payment history has been perfect you get the same information on your credit report.

They must add you as a joint account holder. Adding you as an authorized user will do you no good and will not build any credit.

You need to have a very close relationship with whom ever you are going to use this method with. Why? Because if they miss payments, those missed payments will be reflected on your credit report. If they default or even file for bankruptcy the creditor with whom they added you as a joint creditor can come after you for the balance.

Best Way of Building Credit On Your Own

The easiest way to get and build credit is with a credit card. There are several credit card providers that work with people that have no credit or even poor credit. Most of these cards will have an annual fee. And they typically will have lower chargeable balances, typically $500 or less.

Another really simple and possibly the best way to build credit for you is by working with your local bank or who ever you bank with. Tell them that you are trying to build credit and that you want to use the best ways and products they have.

The banker will more than likely have several options for you. This could be credit cards, small personal loans, a line of credit or maybe even a car title loan. Make sure that you ask your banker if each of the products they offer report to the credit bureaus.

Another good option is to try and get s store charge card. A charge card from Wal-Mart, Sears, JC Penny, etc. are usually pretty easy to get.

As you are building your credit the best way to do it is by getting a variety of credit. Having different types of credit really helps so try and get a credit card, a store charge card, a personal loan, a line of credit, car loan, home loan, etc. Obviously you don’t need all those types of credit. What I am saying is try to vary the credit you get.