ACCOUNT TYPES TO HELP YOU
BUILD/REBUILD YOUR CREDIT
Credit Cards
Credit cards, whether they're a secure or unsecured card will increase your credit scores the fastest as long as:
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The card reports to all 3 major credit bureaus.
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You don't use more than 30% of your available credit limit.
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You pay the minimum amount due or more, on-time each month (if possible setup autopay).
Installment Loans
Installment loans work very different than credit cards, when you open an installment loan you open a lump sum loan that you pay back in monthly installments over a fixed repayment term. Examples of installments loans are:
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Mortgage Loans
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Auto or Motorcycle Loans
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Student Loans
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Personal Loans
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By Now, Pay Later Loans
Lines of Credit
Similar to credit cards, you can borrow money from your credit line up to it's limit, pay off the balance and then repeat. The major difference is that your payback period is different because it's over a fixed repayment term. If you open a line of credit you'll want to be sure that:
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It will report to all 3 major credit bureaus.
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You try to keep your balance under 30% like you would with a credit card.
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You pay the minimum amount due or more, on-time each month (if possible setup autopay).
Authorized-User Accounts
If you're struggling to get approved for a credit card on your own, you can ask a family member to add you as an authorized user to their card. Once added, the account's entire history will be added to your credit report. Before being added, you need to verify that the card:
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Reports to all 3 major credit bureaus.
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Has been open for a minimum of 12 months.
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Balance is kept under 30% at all times.
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​Has never had a late payment and is setup on autopay if possible.