Building credit almost feels like a dilemma. Before you know it, you need an established credit to have a credit card or vehicle loan, but to establish credit, you already need to have either one of those before. But, it doesn’t have to be this complicated if you know where to look.
Many credit card companies require established credit, but you should treat different cards as different products. For one credit company’s product, you may not even be eligible to apply; you may qualify for another credit card from the same company.
How to establish credit fast?
The fastest way to build credit is to get a credit card and max it out. That’s the best way to build credit fast. Even if the credit card doesn’t have a high credit line, you should max it anyways. Over time, you can qualify for better credit cards that will give you more cash back and a higher credit line.
The more you spend with your credit card and the more you pay back to the credit company, you will prove your responsibility. But, this happens over time, and it may take close to a year to build enough credit to apply for loans and new credit cards.
How to track credit score?
Since you want to build credit, you will want to track it. It won’t be like looking up the latest stock price you’re holding, as it takes time to establish a decent credit score.
There are many ways you can track credit, and the best way to do it is by signing up for a credit monitoring service. These will not only allow you to check your credit score anytime you want, but they will also notify you if there is a credit application on your behalf.
It’s a way to protect yourself from the outcomes of identity theft. For extra protection, you can opt out for an identity theft protection which comes with the benefits of what credit monitoring services provide.