If you’re struggling with a credit history that could use improvement, you’re not alone. Luckily, there are many ways to improve your credit scores through the use of personal loans, secured credit cards and time. Your FICO score, determined by Experian, Equifax and Transunion, includes factors such as payment history, amount owed and length of credit history. Here are three ways you can begin to improve your credit.
- Secured Credit Cards
If you’re credit score is below 600, you may not qualify for an unsecured credit card. A secured credit card is a card that allows you to make a deposit to the credit card issuer and they give you a small credit limit in return. You can build your credit this way by making small purchases and paying off the full amount each month. This will lead to trust with the company, an increase in your credit score and the chance to qualify for an unsecured card in the future.
- Personal Loans
Personal loans, also known as installment loans, are another way to start building credit. With a lower credit score, interest rates will be higher and loans could have fees attached. Make sure to keep up with your installment lender Mississippi payments to improve your credit score.
Patience is important when it comes to rebuilding your credit. If you have any bankruptcies or judgements on your record, only time will improve that area of your credit. Many times it takes 7-10 years to see those items drop off your record, but if you’re rebuilding your credit through other methods at the same time, you’ll be in good shape when they disappear.
It may seem impossible at times to improve your credit, but with a little patience and the discipline to make payments on time, you will see your credit score rise.