It’s never easy to get a great loan with low interest when you have bad credit, but it is necessary to get some sort of line of credit in order to build credit. The task can seem daunting because you need credit to get credit, but it isn’t impossible. Some of the best ways to quickly build your credit line are listed below.
Store Credit Cards
Did you know that many store credit cards don’t require anything more than an income? Some don’t even conduct a soft credit inquiry. Montgomery Wards and other stores like it offer online lines of credit. You can’t use the credit line in a brick and mortar store, but you can shop online. Just be careful to keep your purchases small so you only use part of your credit line.
Don’t be fooled by Buy-Here-Pay-Here gimmicks. Most of them don’t report to the credit bureau. Instead, look to lenders outside of the auto industry. Most lenders are willing to take a risk if you have the collateral, which includes a vehicle. Places like One Main offers high interest loans even if you have poor credit. The key is to pay them off quickly so you can avoid the high interest rates. And, keep those interest rates in mind as you build your credit, because the worse it is, the higher your interest is.
Online and Catalog Retailers
Fingerhut is one of the most popular catalog retailers, and they are more than willing to provide a line of credit. You may have to put down a small deposit, but almost anyone can open an account with them. They report to the credit bureau, so it’s a quick and easy way to start adding points to your credit score.
~Here’s to Your Financial Health!