How to Build Your Credit

VantageScore proudly creates models that score 33 million more consumers than conventional credit scoring models but our mission is to help all consumers have healthy credit profiles.

The first step to getting a credit score is ensuring you have a credit file. For consumers who are new to credit or who haven’t used credit for a while it can be challenging getting on the first rung of the ladder. Thankfully there are services available that help you establish a credit file and build on your credit file.

Lenders want to see that a consumer can handle credit responsibly and meet their financial commitments, the following products and services can help you achieve that:

Making The Most of Your Largest Expense

If you are responsible for the rent then there are services that help you show-off your ability to make regular on-time payments. When rent payments are used to establish a new credit file, VantageScore models will use them to generate a credit score straight away (and not wait 6 months like conventional credit scoring models). Adding rental data to an established credit file could add up to 150 points to your score.

Mocafi offers rent reporting through their app-based checking account that doesn’t require a credit check when you apply. Opt in to report payments you make through their Bill Pay app and Mocafi will validate your lease terms with your landlord and report the rent payments they make from your account to Equifax and TransUnion.

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RentReporters offer a paid service to get your rent payments listed on your credit files. RentReporters validate your on-time rent payments directly with your landlord and report it to Equifax and TransUnion, potentially including prior rent payments.

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RentalKharma offers a paid service to get your rent payments listed on your credit files. RentalKharma validates your on-time rent payments directly with your landlord and reports it to Equifax and TransUnion, potentially including prior rent payments. The service can be extended to include a spouse or roommate.

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The Bilt Rewards Alliance is a network of over 2 million rental properties that offer rewards for the rent you pay but also offer the option to report your rental payments to all three credit bureaus. For consumers in other rental properties, Bilt’s credit card product offers BiltProtect, a way of paying your rent from a linked bank account and getting the payments reported to the credit bureaus.

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A New Use for Your Utilities

The gas and electricity payments every modern household make can also help thicken your credit file. This can also extend to your phone line, cable and even streaming services. As with rent, VantageScore models will use utility payments to generate a credit score on new files straight away or add up to 150 points to established scores.

eCredable is a paid service that reports up to 8 utilities to TransUnion, Utilities included are power, water, gas, waste, mobile phones, TV, internet, and landline phone. eCredable links to your online utility accounts and validates your payments for up to 24 months prior.

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SimpleBills is a paid utility management service that combines all your bills into a single monthly payment. SimpleBills allow their clients to opt-in to credit bureau reporting to Equifax for an additional fee that would include up to 24 months payment history.

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Credit For Beginners

If you aren’t responsible for the rent or the utility bills then there are still options available to you to get started with credit products that won’t require a credit history. Credit scores improve when your credit file shows you can maintain payments for a range of products, so these products could complement, or be an alternative to, rent or utility reporting.

Secured Credit cards are quite common with several major lenders offering them. Using a credit card comparison service is a good option to find the best one for you. If you have a credit file they will review whether you meet the criteria for a particular credit card so you don’t make unsuccessful applications. Alternatively they provide lists of secured credit cards that are available for you to choose and apply for.

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Secured Credit cards are quite common with several major lenders offering them. Using a credit card comparison service is a good option to find the best one for you. If you have a credit file they will review whether you meet the criteria for a particular credit card so you don’t make unsuccessful applications. Alternatively they provide lists of secured credit cards that are available for you to choose and apply for.

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Varo offers low fee bank accounts designed to help consumers progress financially. Varo gives their customers flexibility with your secure card deposit through their Believe Card. Believe Card users can borrow against the value of the cash in their Believe Secured Account from which they can add or withdraw as they choose. Activity on the secured Credit card is reported to the credit bureaus helping card holders build out their credit file.

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Self offers a credit building loan that results in a fixed-term loan and repayments being reported to your credit file. Self offers you a loan which is held in a savings account, as you pay down the loan they report your repayments to the credit bureaus. On completion of the loan they return the money held in the savings account less fees and interest.

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Shopping Around

For unsecured credit, consumers may find that store cards are a good option as requirements for credit can be lower than with a credit card you can use anywhere. This will be more useful if you shop at that store. You should manage payments as you would with a regular credit card, meeting at least the minimum payments and on time so you get the benefit of a positive payment history.
Several financial websites have produced articles about the differences between store cards and their approval criteria:
Easiest Store Credit Cards to Get Approved For (wallethub.com)
The Best Easy-Approval Store Credit Cards of 2022 Compared (MyBankTracker)
Instant Approval Department Store Credit Cards - Easiest Ones to Get (First Quarter Finance)
10 Easy Department Store Credit Cards To Get + Some Instant Approval (bucksandcents.com)
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