How to build credit without credit history is a catch-22. Brigit has a way out.
Which comes first, credit history or a credit score? With Brigit’s credit builder feature, you’ll get both at once. If you’re one of the 26 million Americans with no credit history, you can start building a strong history today.
Your credit score, a number between 300 and 850, is one of the most important parts of your financial life. Whether you’re buying a house, applying for apartments or jobs, or getting a car loan, your credit score will affect whether or not you will be approved, and how much you will pay.
But if you don’t have a credit history, trying to get credit can be a frustrating experience. For example, most credit card companies don’t approve people with a low or no credit score. So what can you do to start building a good credit history?
Brigit’s Credit Builder tool is the simplest, easiest way to build your credit. Credit Builder creates a positive payment history for you by opening a 12-month loan in your name. All you have to do is become a Brigit Plus member for $9.99 a month and contribute as little as $5 a month in savings towards the loan, and all your savings are returned to you after the loan has been repaid.
Credit Builder reports your on-time payment history — the largest factor in your credit score — to all three major credit agencies, Equifax, Experian, and Transunion — so they can reflect your payments in your credit score. Sit back and let Credit Builder do the heavy lifting on building your credit — and your new financial future — by signing up here today.
You can become an authorized user on a family member or friend’s credit card. Becoming an authorized user means that you can use the account holder’s credit to build your own credit history. But it’s very important to make sure you are choosing the right person to build your credit with.
Choosing someone who has debt on their credit card or who doesn’t make their payments on time is not recommended because their credit history will show up on your credit report and can hurt your credit score. Finding someone who uses their card responsibly and has a good credit history will help you in the long run.
It’s also important to communicate with the primary cardholder about how you will use the card and pay back the charges you make so that both of you can stay debt free and improve your credit together.
- Getting a secured credit card is another way to start building your credit from scratch. A secured credit card is similar to a credit card, except that you have to pay an upfront security deposit around $200 which is refundable, and usually equal to your credit card limit. That means it’s important to use the card responsibly so you can build a good credit history. Making your payments on-time and using less than one third of your available credit are two of the most important ways you can raise your credit score.
You can start building your credit history today with a few simple steps. Let Credit Builder by Brigit make it easy for you to get the credit score you need.