Credit Building

What is a Credit Building?

Credit Building is a way to help your credit score get better by showing that you can pay your bills on time. It works by adding good, positive things to your credit report. For example, you can add a small loan or a special account to your name, and then when you make your payments, it helps your credit score grow. More on that later on...

How do I go about getting into Credit Building, and how can it benefit me?

You can start building credit by getting a secured credit card or a small loan from a bank or credit union. After you’ve applied and been approved, it’s important to make your payments on time every month. When you do, the bank will report your good payment history to the credit bureaus, which helps increase your credit score.

As your score improves little by little, it shows lenders that you’re responsible with money. This can make it easier to qualify for loans in the future, like for a car or a house, and get better interest rates, saving you money in the long run.

Who/Where do I have to sign up with?

You can apply/sign up to things that increase your credit score with places like your bank, credit union, or even through our trusted online programs

When should I sign up?

After your credit is fixed, you can start building your credit even higher. This is like a second step after cleaning up your credit, so you can make sure your score keeps growing strong. This is how you reach the 800s.

Why would I want to do this?

You want to do this because having a higher credit score helps you get better deals when you borrow money, like for a car or a house. It shows people you’re good with money, so they trust you more. Plus, it can save you money on things like lower interest rates and make your life easier when you need a loan.

Action Steps

Bank/Lender way of Credit Building…

When I say "adding a special account or a small loan," I mean that you can open certain types of accounts that are designed to help your credit. These accounts could be things like:

  • A Credit Builder Loan: This is a small loan that’s specifically designed to help build credit. You borrow a small amount of money and then pay it back over time. The bank or lender reports your payments to the credit bureaus, which helps your credit score go up as long as you pay on time.

  • A Secured Credit Card: This is a credit card where you put down a deposit (like $200), and then you use the card just like any other credit card. The company reports your payments to the credit bureaus, and paying on time helps your score.

These types of accounts are called "credit-building" because their main job is to help you show that you’re good at paying bills on time.

Pledge Loan

A pledge loan works like this:

You deposit a certain amount of money (like $500) into a savings account, and the bank or credit union holds that money as collateral. Then, they give you a loan for the same amount, and you make payments on that loan over time. As you pay it off, the lender reports your payments to the credit bureaus, which helps build your credit score. Once you pay off the loan, you get your money back.

It's a safe way to build credit because you’re essentially borrowing against your own money. It’s great for people who want to build or rebuild their credit without taking on too much risk!

Trusted Online Service Way…

  • RentReporters - This platform reports your rent payments to the credit bureaus. Normally, rent doesn’t show up on your credit report, but by using a rent reporting service, you can get credit for paying your rent on time.

  • Credit strong - Credit Strong is a service that helps people improve their credit by giving them a special type of loan. Instead of getting the money right away, the loan amount is put into a savings account for you. You make monthly payments on the loan, and those payments are reported to the credit bureaus, which helps build your credit score. After you’ve made all your payments, you get the money that was saved. So, while you're improving your credit, you’re also building up some savings at the same time.

  • Kickoff - When you sign up, Kikoff gives you access to a small line of credit. You can use this credit to make purchases and then pay it off in small, manageable monthly payments. Each time you make a payment, Kikoff reports it to the credit bureaus, helping to establish or boost your credit score. Kikoff is known for its low fees and simple setup, making it an easy and affordable way to improve your credit.

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DISCLAIMER: The examples and results shared on this website are individual cases and should not be considered typical. Results are not guaranteed, and there is no implication that you will achieve the same outcomes. All information provided is for educational purposes only and does not constitute legal or financial advice. By using this website or any related materials, you agree to take full responsibility for your own results, whether positive or negative. While our team is here to offer support, individual results can vary significantly, and many factors—such as background, financial habits, and level of effort—can impact outcomes. It’s important to do your own research and due diligence before making any investments or taking risks.