How to Easily Establish Credit

Having a credit score is useful for a variety of reasons. First, it makes it easier to get a loan. Sure, you can get a mortgage without a credit score. But it’ll be very expensive and it’ll be quite a hassle. That’s why buying via credit is much, much easier.


But you probably know that. What you may not know is that it’s pretty easy to establish credit. Let’s get to it.


Let’s pretend you either have horrible credit or no credit. By the way, no credit is bad credit. Here’s what you need to do right now.


Go to and look over your credit reports. There will be three, one from each of the three major credit bureaus. It’s free to do this once per year.


Look over each report from inaccuracies. If there are any, address them. It’s fine if you’ve made mistakes in the past. You can pay for those. But the last thing you want to do is get punished for something you didn’t even do.


After your credit reports are accurate, it’s time to build. The first thing to do is find a secured credit card with guaranteed approval. They are out there. I’m thinking of one right off the top of my head. Usually these cards only need to see proof of income and your income must be $100 more than your expenses. This criteria is pretty lenient.


Make sure also that this card reports to all three major credit bureaus. If it does, it’ll advertise it. The card I’m thinking of reports to all three. It’s the Primor Classic Visa Card by the way.


Now you’re off to the races. Yes, once you get this card and start using it, you’ll start building credit. This is what I’ve done. I know that some day I’ll want to buy a home. So I’m hustling to increase my credit score. All I’m doing is using the one credit card responsibly. I pay each month. I never push the credit limit.


You can increase your credit score faster by taking out additional loans. But unless you’re in a major rush, I wouldn’t recommend doing this. It’s a lot of hassle and loans are expensive. What you want to do is establish your credit as early as possible. Then it’s really just a matter of sitting back and relaxing. As your score increases, you can opt for an unsecured card if you wish. Then you’ll be able to actually use credit. See, because secured credit cards are secure because you’re putting up the money upfront. Let’s say you want a credit line of $500. You must first deposit $500. Then, you use that ‘credit’ with your card. When the time comes to cancel, you can get your deposit back.


What most people want and think of when it comes to credit cards is the unsecured type. With an unsecured card, you do can spend the money of the credit card company.


To close, it’s important to understand that establishing really solid credit takes time. It’s the same as building trust in someone. You wouldn’t trust someone you just met. Lenders don’t trust someone who’s just started building credit. It’s inconvenient but understandable.


Be patient. Enjoy the process. Enjoy how easy it is to rent a place to live. Buy a $1,000 Honda and learn to appreciate its reliability and simplicity. Some people actually do go through life without have an established credit score at all.


Once you get your score established, keep using your card(s) responsibly. Then your credit score will do nothing but grow. Once you get into the upper 700’s, the world of lending opens up to you.


What’s your score now? What’s your target score?


Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment


Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
income tips, saving half your income, ways to save your income

Simple Way to Save 50% of Your Income

That’s right. Save half of your income. It may sound crazy but I assure you that it is not. The following post will show you... more →