Credit card building is an exciting issue for all our 22s. After finishing our university all of us want to create our first credit card. Often we see after filling up all the details still our request of building credit card is being cancelled. Why it happens? Because if we do not have a credit history. For creating a small business line of credit we need credit card for qualifying larger loans.
Needs for building credit card:
If we do not have credit history the lenders cannot take decision whether they should give us the money or not. Any financial institution, big or even small business loan brokers will see this important factor. Their expectation cannot be cleared for that; if we run away or we will pay off the amount of loan is taken. We have to prove our credit worthiness for getting the loan. We have to show the bank our good credit scores.
We have to build new business credit if we do not have any history of using credit. We never know when our loans demand arises. So a solid credit history helps us to get more money. Sometimes I saw people to lose their credit because lack of the use.
Path to build a credit:
There are various ways to improve our credit records and these are very important for bank or other financial institutions when they would like to make an important business loan decision for their load applicants. Good credit track records do not come easy. There are few things people need to do to keep their good credit record and this may stays for longer period of time. It is considerably easier for people to obtain credit/loan from Bank or other financial institutions simply because people entitled for this are those who have been putting amount of fund in their bank account and this made the credit process easier.
Use a co signer who has a good credit, can qualify for a loan for our business. The co signer’s credit will be considered by the lenders.
We can become an authorised user of somebody’s credit card. We can use retailer programs for large purchasing.
Use different kinds of loans for creating a rich mix to our credit file. We should not borrow loan for just simple reason. We should borrow for student loan or a car loan etc. It shows that the variation of loans we can take as in different conditions.
Building credit keys:
The process of building credit is similar as taking a loan. The best way to build a solid credit is to repay and borrow in time. But before that, establishing business credit must be in place. First we have to be sure about our credit history is without any error. The monitoring of credit reports daily gives you a good credit history. If we use any card we should keep it our mind that we should not cross our credit card limit. Better we stay 30 percent of our limit. If we are passing through a hard time we can use the alternatives to make our credit solid. We can create accounts on bank, getting utility accounts such as electric or gas in our name and make sure to pay those in time. Using the account responsibilities can improve our chances.
We need a credit at some point in our life. Suppose we want to start up our new business; we need a loan for our establishment. Most of the people get credit by using the credit card. But some people are not verified for that. So we need a solid credit history for requesting a loan. Taking a loan or built a credit are most interpreted words and both carries almost same meaning. We have to learn how to build credit. We need a solid credit history for building a good credit. There are various processes to increase our credit level. But all are slow processes.
The smooth path for establishing our credit:
It is very important to have a very good credit score. When we pay money for insurance, a solid report saves a lot. It will work as an approval of loans sanction. A credit above 720 rating saves several hundred bucks.
The lender sees our bank account before as a sign of stability. So establishment of bank accounts are necessary. All monthly bills like telephone bill, rent, gas, electric bill etc can help to build the credit. We should pay the bill in time. The credit details should be updated daily and we have to check at least once in a week.
Become an authorised user:
We can become someone’s credit card holder. Still we do not have the credit card but we can boost our credit by help of our friends or family members. It is not necessary to accept a separate credit card. The person’s credit history will be ours. Be careful still. Suppose that person has a big balance in his or her account but he or she could not pay the amount in time then the raising of our credit will be decreased.
Get a credit card from bank makes easy to build credit because the deposited money at our account will become the credit limit.
By using a co signer who has a good credit will help us for requesting a loan. The credit of that person will be considered by the lenders.
Using a retailer programs like gas, electric helps us to improve our credit history. The card from gas station or bills of electric office makes our credit higher. They can help us for a certain level of increasing the credit.
We can apply for personal loans; like car loan, home loan etc. We have to show the lenders that we keep that much strength to pay the amounts. We should remember that we cannot spend the money which exceeds credit level. So we have to remember the terms and conditions. It is better to stay in a limit of 30 percent of the credit.
There are various keys in our hand to build our credit. Pay the amounts of loans at a determined time is necessary for building credit. We have to be careful about our error free credit history. We have to assure ourselves to monitor our credit reports regularly.
We have heard that keeping one and two credit cards and using them properly with a good credit value gives you a high credit score. It also matters to pay the amount of loans like car loans, home loans etc in time. It is needed at some points in our life. If we want to start a new business; we need loan for our plan. Generally most of the people get credit using their credit card. But some people are not eligible for the credit cards. For that we need a solid credit history. Taking a loan or built a credit both carries almost the same meaning. We have to learn how to build credit.
Credit building paths:
We need a solid credit history for building a good credit. There are various processes to increase our credit level. But all are very slow processes. It becomes a problem for the lenders if we do not have a good credit history. The expectation of the lenders cannot be cleared; if we run away or we will pay off the amount of loan is taken. We have to prove our credit worthiness for getting the loan. We have to show the bank our good credit scores. We can take help of someone who has a good credit. For that, the bank can believe us easily.
We have to build credit if we do not have any history of using credit. We never know when our loans demand arises. So a solid credit history helps us to get more money. Sometimes I saw people to lose their credit because lack of the use.
The all ways of building credit takes so much of time. So be careful for that. For a quick bumping up of our credit, there are some ways. And they are real. The significant improvements of our credit card do not come quickly. The below approaches makes our credit history solid and it stays rest of our life.
A good credit holder co signer can qualify for a loan for our business. The co signer’s credit will be considered by the lenders.
We can use different kind of loans and bills for enriching our credit file; Gas, electric bills, car loans, home loans etc. We can show the lenders our power to pay all these money in time.
Building credit keys:
The best way to build a solid credit is to repay and borrow in time. We can assure them to error free credit accounts. The monitoring of credit reports daily gives you a good credit history. If we use any card we should keep it our mind that we should not cross our credit card limit. Better we stay 30 percent of our limit. If we are passing through a hard time we can use the alternatives to make our credit solid. We can take loan for different aspects. And we have to be responsible. The credit building process is a little bit tough but with patience and carefulness can make them successful.