The Top 4 Ways to Build Credit

Why is building credit important?

Building credit is essential if you want to access credit, save money on interest rates, and improve your chances of renting or getting a job.

That last part is a bit surprising, we know.

Lenders look at your credit score to determine how much they can trust you. So it really does matter whenever you do things like:

• Apply for a new apartment
• Buy a home (a good credit score can save you $1000s)
• Job interviews: A lot of employers will include a credit check as part of the hiring process

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‍1) Create a budget, baby

Why?

Because if you set a budget, the probability of you achieving your financial goals is much higher 🚀

Saving for a house? A car? Or a dozen eggs?

Budgeting’s gonna help you with that.

It’ll help you plan and track your income and expenses, so you can start living within your means and avoid overspending (which means cutting back on those late night takeouts) 👀

But the best thing…?

Budgeting can lead to savings. Which means you’re more likely to have access to money when you want to do something spontaneous ✈️

And not forgetting an emergency fund.

If you’re ever hit with an unexpected bill, you’ll have a safety net to fall back on so you can avoid accumulating debt or dipping into your savings pot ❌

We’ve got just the thing to help…

Cleo’s free budget app 💖

All you need to do is set aside a few minutes to get set up.

Enter your bills and monthly income, and she’ll keep you on track with regular reminders and updates.

Love her.

Cleo shows how much money you’ve got coming in and how much money you’ve got going out. She’ll also show you when your bills are due and how much you’re spending on certain categories including:

💡 Bills
🥑 Groceries
🥴 Bank charges (pests)
🏦 Loans
🏎️ Transport
👖 Shopping

Future you is gonna thank present you for this.

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For budgeting tips, here’s How to Make a Budget with Cleo 💸

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‍2) Become an authorized user

An authorized user is someone who has been given permission by the account holder to use their credit card or other financial account.

If you’re an authorized user, you’ll be able to make purchases but you’re not legally responsible for paying the debts or managing the account. This is the primary account holders responsibility, and they can set limits on the authorized user’s spending or remove access at any time.

Handy.

If used properly, it could give your credit score a decent makeover.

✅ Pros: If the cardholder makes the payments on time, it’ll have a positive impact on the authorized user’s credit score‍.

❌ Cons: If the cardholder doesn’t make the payments in time, it’ll have a negative impact on the authorized user’s credit score.

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3) Pay your bills on time

Yep.

You heard.

Paying your bills on time is one of the most important factors when it comes to building your credit score.

Your credit score is a visual representation of your creditworthiness and paying your bills on time is critical for maintaining a good credit score.

Good credit score = leads to better credit opportunities and lower interest rates on things like credit cards, loans, and mortgages.

✨ Avoiding late fees: The majority of bills have a due date, and if they’re not paid by that date, you could get hit with late fees and penalties. Over time, these fees can add up and increase your overall debt.

✨ Maintaining a good credit score: Paying your bills on time demonstrates to lenders and credit bureaus that you’re reliable and can be trusted to make payments on time. This positive payment history could help improve your credit score and make it much easier to obtain credit in the future.

✨ Building good financial habits: It’s a habit you’ll wanna get good at. Making on-time payments helps you stay organized and responsible with your finances. You’re an adult now. It’s time to do adult things 💅

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‍4) Using secured credit cards to build credit

A secured credit card is often used by people who are trying to establish or rebuild their credit history. The security deposit reduces the risk to the issuer, making it easier to get approved.

With these types of cards, you pay a security deposit which then becomes your credit limit.

Each month, you’ll need to pay your secured credit card bill on time. The payments should then be reported to the major credit bureaus (Experian, Equifax etc) to help improve your score.

And we have just the thing…

Meet The Credit Builder Card 🔥

This little beauty is designed to help you build your credit history and could help you get lower interest rates on things like loans and mortgages in the future.

Building credit can be hard, and that’s why we’ve kept our subscription real simple:

💙 The amount you add to your security deposit becomes your credit limit
💙 It can help build your credit and help you to improve your score
💙 $1 minimum deposit
💙 No interest
💙 No credit checks

For $14.99 a month, you’ll get a Cleo Builder subscription that unlocks your card, cash advances*, and priority support for your credit journey.

Interested? Thought so. Here’s How to Build Credit History with The Credit Builder Card.

Apply for your Credit Builder Card in just three minutes. No credit checks or interest 🚀
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‍‍Big love. Cleo 💙

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*The Credit Builder Card is issued by WebBank, Member FDIC pursuant to a license from Visa USA Inc. Access to the Card is subject to approval.