1. Take Out a Credit-Builder Loan
At first, taking out a loan might seem counter-intuitive, but this method can help your score rise exponentially over the course of a year.
These credit-building loans come with an initial fee while monthly interest rates could sit between 10% and 15%, but the benefits far outweigh these cons. Here’s now. Your lender will put the amount of your loan in a CD, a certificate of deposit, for one year. You’ll pay a portion of the loan as well as an interest fee every year until the loan is paid off.
At the end of the year, your CD will unlock and you can take out the cash, plus the interest that accrued.
Some people have seen their credit score jump by 22 points in the first month. Others have seen improvements from 495 to 640 in just five months, while one person reported that they gained as many as 100 points over the course of the whole year.
Not such a bad idea now, huh?
Check with a local credit union or community bank, or look online to compare services to find one that fits your needs!
