Learn about Credit - Building Credit Part 1

Host: How can I build credit?

Vikki Frank: The best way to build credit is to get the good stuff going. One of the good points of the current credit industry is that recent activity of good behavior really has a lot of weight.

So if you have a poor credit history due to no or lack of credit in lending although you have a history of a high debts that you haven’t able to pay back on time. Getting a good stuff going today and getting that good stuff reported to a credit bureau is really important.

One of the catch-22’s in our current credit system is that many of the creditors that lend to borrowers with poor credit do not actually report positive information to the credit bureaus. They only report negative. They’re very quick to report whether you’re very delinquent or whether the count has gone to collections. Well, they’re not doing is letting the credit bureau as now you’re paying back on a monthly basis. They don’t have an incentive too. They’ll be helping you graduate to more main stream financial institutions.

So the important thing is getting a line of credit with a main stream financial institution. A small secured credit card, a small loan, or you can pay that back on time every time and doing that starting going forward.


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