Developing a credit history can be very difficult, but there are a few small techniques that people can use to increase their credit score or repair a credit score that has already been damaged.

Prepaid credit cards, secured credit cards and authorized credit cards are all small ways that someone can attempt to increase their credit score. A credit score can be important for many things, including getting an automobile loan. An automobile loan will often be the first type of loan that many people will get which means that they will have to get the loan based on a short credit history.

Those who are developing their credit reports or are repairing their credit reports can use secured cards to establish a credit history. Secured cards will still affect the borrower’s credit positively but are easy to get because the card is paid before the consumer uses it. Secured cards usually operate just like credit cards and the credit limit that is reported is usually the maximum amount that the borrower has paid in. This means the borrower can increase their apparent credit utilization by paying in a large amount initially and then spending it.

Apart from secured cards, one way that a person can increase their credit score is by being added as an authorized user on someone else’s credit account. This is often an excellent way for adult children to build their credit under their parent’s account. Credit bureaus do not require that the authorized user pass a credit score check, and this means that those with bad credit or no credit can easily be added as an authorized user on someone else’s account. A person’s credit score can increase as much as sixty or seventy points simply by being added as an authorized user on a credit account, which can sky rocket your potential for a used car loan and also they can be added as an authorized user on multiple accounts if necessary.

A credit score will increase immediately after authorization, but it will not increase all at once. The credit score will increase slowly over time and will usually not increase more than seventy points. The authorized user should also check with the creditor to make sure that they report authorized users to the credit bureaus because some of them do not. If you are want to improve your chances of auto loan approval with no proof of income or other situations that lenders may be wary of then you will want to have the best credit you can. Being an authorized user is often the best first step in developing a person’s credit score, and it can be used in tandem with other methods of credit score increase for a full credit strategy.