What Are Some Ways You Can Build Credit?

What Are Some Ways You Can Build Credit?

Individuals can build credit by putting utilities in their name and paying the bills on time. Other ways include obtaining a credit card and maintaining a low balance that is paid in full, or by applying for a small personal loan at a bank or credit union, suggests Forbes.

Secured credit cards allow those with bad credit to reestablish their financial bearing by placing a predetermined amount of money up for collateral in exchange for a line of credit, states Bankrate. Although the balance eventually is paid, on-time payments favor higher than payments reported as delinquent. The latter reduces credit scores as well as using the entire line of credit at once.