Hello, Club 720 crew!
In our previous post, we unlocked the concept of credit and discovered its vital role in wealth-building. Now, let's tackle a question many of you have asked: How do I start building good credit?
Fear not! Today we bring you some simple and practical tips to kick off your credit journey on the right foot.
1. Open a Bank Account
Opening a low- or no-fee bank account is the first step to building credit. It establishes a relationship with a bank, and while it may not directly impact your credit score, it can be an indicator of financial stability. Lucky for you, Club 720 has partnered with several trustworthy banks to help you get started!
2. Apply for a Secured Credit Card
A secured credit card is backed by a cash deposit you make upfront. The deposit amount becomes your credit limit. Secured cards are designed to help people with no credit or bad credit build credit since the card issuer has the deposit as a security.
3. Pay Your Bills On Time
From your Netflix subscription to your electricity bill, try your best to pay your bills on time. This might seem small, but consistent, on-time payments demonstrate to lenders that you can manage your finances responsibly.
4. Keep Your Balances Low
Once you get a credit card, aim to keep the balance low. It's a common myth that you have to carry a balance on your card to build credit. Nope! In fact, keeping your balance low in relation to your credit limit can positively impact your credit score.
5. Apply for a Credit Builder Loan
Consider a credit builder loan, which allows you to build credit while saving money. Club 720's partner banks offer these loans as a way to help you kickstart your credit journey.
6. Be Patient
Last, but definitely not least - be patient. Building good credit is a marathon, not a sprint. Keep doing the right things and over time, you'll see your credit score climb.
Remember, the road to good credit is a journey, and every journey starts with a single step. Here at Club 720, we're here to guide you every step of the way. You've got this, Club 720 fam!
In our next post, we'll dive into how our partner banks can assist you in this credit-building journey. Stay tuned and keep being financially fabulous!
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