I strive to help each of my clients reach their goals as quickly as possible. Part of my job is to help educate you on the process. I'll work on what's currently reporting, but I will need to simultaneously have you work on adding positive history. As we work on these things in tandem, you will see the best results with our Credit Building Blueprint.
I recommend that you contact your current financial institution and ask if they have a product or products that can help you build your credit. This could be a secured credit card, where your deposit acts as your credit limit, and/or Credit Builder Loans, where the bank will report an installment loan on your behalf and you pay the monthly amount to build the credit history.
If you need assistance, I have companies that our clients have worked with in the past that worked on reporting positive credit history which can help you as well. If you don't know where to begin, then I recommend you start off your rebuilding process with the links below. This is where your credit will start to form and I can help guide you through the process.
My recommendation is to start with Step 1 and Step 2.
REVOLVING ACCOUNTS
Step 1: Open Sky - The OpenSky® Secured Visa® Credit Card is secured with a deposit and does not require a credit check so you cannot be declined for poor credit history. Reach your goals faster with a different type of card.
If you struggle with damaged credit, you are not alone. 56%1 of Americans have a low credit score. It can hold you back from getting a mortgage, car loan, credit card, and more.
The OpenSky Secured Visa Card works differently. You set your credit limit with a security deposit to your account. Use the card for everyday purchases and make the minimum payment each month. We report your progress to all 3 major credit bureaus so your score improves over time.
Step 2: Secured Credit Card – This is the 2nd and 3rd accounts you should get. You will need to put a minimum deposit of $200 as a secured payment to help your rebuilding process.
NEVER spend more than 35% of the limit ($100), however for BEST results you should ALWAYS stay below 10%.
Step 3: Piggy Backing - This is where you get added to someone's credit card and "Piggy Back" on their good history of the account. Typically you would do this with someone that you know and that has perfect payment history with the company and has a utilization ratio under 7%. If you need assistance with this tactic, please reach out and let us help you with the details.
Step 4: Capital One - This is where we will begin. We have to start somewhere, and in your case, this is where that 1st step will begin. This is a Pre-Qualification application to let you know where you stand. You may only qualify for a secured credit card but it's a start in the right direction to build your credit profile. Whatever you receive, it's important to only spend up to 10% of the credit limit. If you spend more than that, your score will begin to drop. Make sure you know the day they report to the credit bureau and pay your balance down 3 days prior to the report date.
Step 5: Discover - We want to see where you currently stand. Sometimes you are able to qualify for a secured card with Discover which is a great card to have. By clicking the "Discover" link it will bring you to a "Pre-Qualification" application. If it says that you are approved for a secured account, don't spend more than 10% of the credit limit. If you are only approved for a secured card, then follow the same instructions in Step 1 above.
INSTALLMENT ACCOUNTS
Step 6: Installment Loan – We recommend getting this account to add to your credit mix. Your credit mix accounts for 10% of your total FICO Score is will help assist you in building your score.
This account works like a savings account with the benefit of reporting positive payment history to your credit report. We HIGHLY recommend saving a minimum of $48 per month for the next 12 months. By clicking the link you will see the perks of the account.
A loan consultant will consult with you and a loan will be designed based on your needs and credit profile. The interview will allow you to explain your credit history.
We HIGHLY recommend waiting until your credit monitoring score is above 700 across all three bureaus before applying for this account.