Becoming a Credit Genius

How to build credit

If you’ve ever tried to build credit and were denied for a credit card, you know how devastating it can be to not have a way to pay for something because you don’t have enough money in your pocket. You might have tried to apply for a student credit card and got denied because you don’t have any credit history. So, how can one build a credit history if they get denied for not having any? Here are some strategies you may follow to help you establish credit.

1. Apply for some trade lines, like: Shell, Chevron, BP, QT, or Circle K, etc…
2. Apply for retail credit cards, like: Macy’s, Kohls, Dillard’s, Victoria Secret, etc...
3. Make purchases
4. Make regular payments
5. Don’t carry balances that are more than 10% of your credit limit (this is important, you do not want to max out your credit cards, this lowers your score)
6. A couple of months into this process, check your credit scores and make sure they are in mid-600 or higher.

The goal in building credit is to reach a point when your credit score is in the mid-700 to 800. This is not easy, especially if you have large student loans. But you can achieve this by continuously paying your bills on time and increasing your credit lines. Again, you are not increasing your credit lines to so that you can spend more money!! You are doing it so that you can demonstrate your credit worthiness!!

Credit Scores