It’s within reach. There are several effective ways to build credit
Foster City, CA – October 6, 2021 – CardRatings.com, a leading credit card comparison site, releases a new resource to explain how constructing a strong credit history is vital to attaining a positive credit score: How to improve your credit score when you have no credit.
“It’s difficult to get a lender’s trust before becoming a well-qualified borrower,” explains Brooklyn Lowery, editorial director at CardRatings. “Once a consumer is considered a trustworthy borrower, more premium credit products, lower interest rates and additional borrowing opportunities emerge, but certain readers admit to confusion about how to get there”
In the new report, CardRatings demonstrates the connection between improving a credit score and building a credit history, and how to do both effectively.
How long it takes to establish credit depends on the scoring company; both FICO and VantageScore use systems that range from 300 to 850. Scores may start off slow, but rise over time by using credit products responsibly. Payment history, credit utilization and length of credit history are among the factors used to compute a credit score.
Higher scores translate into better terms and the ability to qualify for items such as auto loans, credit cards and mortgages.
CardRatings explains several ways to build credit with no credit history:
- Secured or student credit card. Many issuers, such as Capital One or Bank of America, offer secured cards. Many banks also offer student credit cards for which they relax certain restrictions.
- Retail or gas credit card. A couple of accounts used responsibly, such as a retail or gas card, can help create a healthy credit mix.
- Relationships. Opening a checking or savings account at a local bank or credit union could help facilitate credit card approval in the near-term and potentially support a future car loan or mortgage application approval.
In its new resource, CardRatings provides guidance to those who have suffered a slip in their credit score.
“Even with the best intentions, credit mistakes can happen,” concludes Lowery. “The good news is there are ways to get back on track.”
CardRatings is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance marketplace technologies and services to the financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. CardRatings is a member of QuinStreet’s expert research and publishing division.
CardRatings innovated online credit card ratings and has been offering independent ratings and reviews of credit card offers since 1998. The website collects and maintains data on more than 700 credit card offers and carefully compiles objective lists of the top credit cards by card type, making it easy for consumers to find the right card to fit their needs. Sign up for the bimonthly newsletter here.