Using Credit Cards To Build Credit

Using credit cards to build credit is probably the easiest way for anyone to build credit quickly. But what you may not know is that you don’t actually need to apply for a card to build credit with one.

I know that sounds impossible but it really is not that difficult. All you need is a close friend or family member that already has a credit card with a clean pay history and your in like Flynn.

All your family member or friend needs to do is call and add you to their account as a joint account user. They will need all your info including your social security number to do this. Make sure you are added as a joint user not an authorized user. If all they get for you is the authorized user it will do nothing to build your credit.

The beauty of this is that once you are added to their account you instantly have a credit history for as long as they have had the account. You really need to have a heart to heart with whom ever is helping you so that you are fully aware of the history of that account. The last thing you want on your newly formed credit is a history of late payments.

Now I have a word of warning for you. If they do start missing payments it will reflect on your credit report as well. If they stop paying and get sent to collections it will report on your credit report as a collection as well. If they get sued for nonpayment you could get sued as well. If they file bankruptcy on the card that you are a joint account holder on the credit card company can come after you.

If the above paragraph makes your stomach a little queasy I can’t really blame you. But there are a few alternatives.

First I would contact you bank about a card through them. If you have been a good customer with little to no overdrafts, have a savings account, and have been with them for a year or more you will probably get approved easily for a card.

If your bank does not approve you, you can also apply for a secured card. Secured cards pretty much have a 100% acceptance rate as you are securing it the exact amount of funds that will be available on your credit card. That way if you default they already have your money. A quick internet search will yield hundreds of different secured cards available for you.