Credit cards are commonly known as one of the easier of ways to build your credit rating back up. However, for those that aren’t quite as keen on taking on such a responsibility, or those who just can’t get a credit card, there are a couple of other options available if you’re looking to build up anexcellent credit rating.
With a few different approaches, you could learn a vital skill of building your credit rating by taking out certain types of loans instead and even just making sure you pay all your bills on time!
Making Repayments on Your Student Loan
Many students are granted a student loan if they are enrolled in an appropriate course with the relevant further education establishment. However, regarding building your credit rating with such an investment, you do need to look at repaying them as soon as you can.
It is possible to begin repaying a student loan while you are still studying, and this is an excellent way of starting on that credit rebuilding path. However, you can also wait until you have graduated. The key here is to make sure you pay on time every month to continue building your rating.
Taking Out a Credit Builder Loan
Working on a similar basis to that of a credit card, a credit builder loan will record your payment history on your credit report, so all payments made on time will inevitably boost your credit score.
These loans are great for building your rating because they do not allow you to access the money given in full until you have repaid the loan. Therefore, you are less likely to get into problems knowing that once you’ve completed the payment plan that money is all yours to keep.
Local credit unions can inform you of the availability of such loans, and you can even access some of these programs online.