Most of you know that acquiring secured credit cards after your bankruptcy discharge is a great way to rebuild your credit rating. There are two other methods I’d like to discuss now.
One other method is called a Credit Builder loan. This is an agreement with a creditor to make regular payments to a savings account. The timely payments you make towards this account are reported to the credit bureaus. Once the term is completed you would then have access to your savings plus whatever interest has accrued. If you select a payment plan that you can realistically afford this is a terrific way to add to your credit profile.
The other method is a new service offered by Experian, one of the three major credit bureaus. This service is called Experian Boost and it allows you to have your timely utility and cell phone bill payments add to your credit history. This is a great way to make your reoccurring monthly budget items a plus towards improving your credit score.
It’s important to realize that having many sources for your credit history adds confidence to a potential lender in determining your eligibility for a line of credit, auto loan, or home loan.
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