All jokes aside, having good credit is one of the most important things to help set you up in life.

Whether it’s being able to get a new car, owning your own home or even getting a credit card, good credit is almost always needed. If you’re one of the many individuals with bad credit or no credit history, you’ll likely struggle to obtain these things.

Missing one credit card payment can drop your score 100 points. Imagine the damage this could do if you miss 2 or 3 monthly payments.

Not to mention, the credit bureaus don’t take these negatives off your credit report for 7 years! This is why having poor credit can affect your life for years down the road.

However, building your credit and raising your credit score doesn’t have to be this impossible task. There are specific things you can do to increase your credit score in a matter of months (sometimes sooner).

One of my favorite options is a credit builder loan or a credit builder card. They are great for those looking to build credit and for those with poor credit scores.

A credit builder loan is essentially an account you make payments towards each month. Two of the best available are Self Credit Builder and Credit Strong. They may also refer to it as an installment loan.

Essentially this is how it works.

Every month you make a payment into the account and then those payments get reported to the credit bureaus. This will help you build positive payment history in no time. The best part, is that you’ll also save a lump sum amount of money.

After your term is finished, your money from the monthly payments gets sent back to you. Now, you have a lump sum amount of money and many on-time payments on your credit report.

A credit builder card is similar to a prepaid or debit card, but it allows you to build your credit.

Pretty cool right?

Just like the credit builder loan, your monthly payments get reported to the credit bureaus each month which helps build credit with payment history.

The Chime credit builder card is one of the best options because there’s no hidden fees or credit check (full review on my YouTube channel).

That means you could have a 400 credit score and won’t have to worry about getting denied like you would with most other credit cards.

How do I know this?

I was a financial advisor for several years and I used Self Credit Builder in the past to help build my credit which is now in the 700s.

Both of these options are easy to obtain and can make a positive impact in a matter of months. It allows individuals to diversify their credit mix and build payment history.

Payment history accounts for 35% of your credit score and this is why I like both of the options mentioned above.

Some of my subscribers even claim they raised their score over 200 points!

Make sure to do your own research though!

Credit repair companies will guarantee results and make promises they can’t live up to.

Most will also charge high monthly fees so they have no incentive to get results for you in a timely fashion. If they can keep you on the hook longer waiting for results, they can make more money.

Think about it. If they get you results right away like the claim they can, you’d be able to leave them. This is why when you join them, the excuses will roll in and they will keep you around as long as possible. Sorry to break it to you, but they don’t care about you or your results.

Negative marks are nearly impossible to get removed from your credit report nowadays. This is why it’s crucial to be proactive with things like a credit builder loan or card like the ones mentioned above.

Just because you have bad credit right now, doesn’t mean you can’t do something about it today.

In conclusion, waiting around for your credit to improve could take years, but will take significantly less time if you’re proactive about it.

If you’re interested in learning more about raising your credit score, make sure to check out my YouTube Channel (Jordan Parker – Personal Finance & Credit).

Don’t pay hundreds of dollars a month for what I can explain to you for free!

Have an awesome day and thanks for stopping by!

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