Cosigners are helpful for building credit because they make it easier to qualify for credit cards and loans. People with poor credit scores or a short credit history can sometimes qualify for virtually any type of credit purchase with a cosigner -- even a new automobile or house. However, it is possible to build credit fast with without a cosigner. Building your credit without the help of a cosigner will offer a sense of personal satisfaction as you take complete responsibility for your finances and credit.
Instructions
- 1
Open two secured credit card accounts without the help of a cosigner. Banks and credit unions offer easy approval on MasterCard and Visa credit cards if you make a deposit into a savings account. The bank holds the money as collateral, with the amount on deposit usually becoming the credit limit on your credit card. Secured credit cards look and work the same as regular MasterCards and Visas. You can build your credit fast by using the cards for small purchases and paying off the balances each month. The bank will report activity on the cards to the major credit bureaus each month. Visit your bank or credit union to open a secured credit card, or check other banks, including banks advertising secured cards online.
2Obtain a secured installment loan. Getting a secured installment loan from a bank is the same process as qualifying for a secured credit card. Make a deposit into a bank savings account for collateral and take out an installment loan with equal monthly payments for two years. Deposit the proceeds from the loan into the savings account and instruct the bank to draft the payment each month from the account. Each month the bank will update account activity to the credit bureaus.
3Apply for a department store credit card and a gas station credit card. A good payment history on the secured cards and installment loan should make it easy to qualify for these cards. Use the cards for purchasing necessities and pay balances in full each month.
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