You’ve already removed some of the negative stuff or you’re in the process of removing some of the negative stuff. Now, when you’re in the process of removing the negative items, you can get yourself a secure credit card.
You can get yourself a secure loan as well, a credit-builder loan, as they like to call it. Or you’ve disputed stuff off, and now you’re in the position where, maybe I can apply for something that’s not secure, unsecure. You know, I usually tell people to start with a shopping credit card, one of those Target cards, Sears, Best Buy, something small, get you a little limit. I remember I had like a shopping card for one of these Express or Gap or something like that, it was a $500 limit. That’s where you want to start and you pay that off. You get something small and you pay that off, you get something small, you pay that off.
Never carry a balance
People want to be like, no you got to have a little balance here and this and this, and no, no, no, no. Pay it off over time, pay it down every month. Now, you’re building up your credit score, get you an unsecure credit card, something that’s like not up in here, some big, you know, gold, platinum American Express or something, something small, okay? Some no-fee, maybe Capital One no-fee, no annual fee card and then from there, you pay that off every month. Put everything on that, like you would pay with cash. Your gas, your food, your electricity bills, you know, utilities, cell phone, and pay it off at the end of the month.
Use it like cash
Then you’re building it up, building it up, you get you a bigger credit card, you can get your car loan, you can get your mortgage. That’s how you do it, slowly but steadily. Get the negatives off, build up slowly, never carry a balance, pay on time, because payment history is your biggest chunk, almost 35% or more. Really, I mean that’s what they say, 35%. I don’t know precisely the algorithm, but it’s supposed to be 35%, so anyway, that’s how you do it,