There are a number of ways to start to rebuild your credit. Here is a list of three things you can do:
Have your rent payments reported to Experian
One way that you might not think about is by having your on-time rent payments reported. If you rent a house or apartment, talk to your landlord about reporting your rent payments to Experian. You can learn how at www.experian.com/buildcredithistory.
Having rent reported has proven to be very helpful for people with little or no credit history or for those who are working to rebuild a damaged credit history.
Open a secured account
A secured account is tied to a bank account, usually a savings account. Your credit limit is a percentage of the account balance. If you fail to pay, the bank can use the savings to pay the debt.
The payment history of a secured account is reported just like any other credit card account, so can help you rebuild your credit history.
Be added as an authorized user or joint account holder
When you are added as an authorized user or joint account holder on another person's credit card, the account will be included in your credit report, too. If the account is managed well, meaning the balance is kept low and the payments are always on time, it will help your credit improve.
There is a very important distinction between the two types of account association. An authorized user has no responsibility for repayment of the debt. A joint account holder shares full responsibility for the debt. If you are a joint account holder and the other person doesn't pay, you are then responsible for paying the whole debt amount.
Check out the scope to hear answers to all the questions asked:
Do you have questions about credit?
Join our live video chat every Tuesday and Thursday at 2:30 p.m. ET on Periscope. Rod Griffin, Director of Public Education at Experian, is available to answer your questions live.
Scoped on: 08/02/2016
Want to instantly increase your credit score? Experian Boost™ will be available in early 2019 and helps by giving you extra credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.
This service will be completely free and can boost your credit score fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report.