No Credit Is Worse Than Bad Credit

By: Ije Valent

As many young American move from childhood to adulthood they are faced with a grim reality. They have no credit, and now they are classified and bunched with those who have bad credit. Any creditworthiness you acquire is directly linked with credit lines that you have on your file.

Each credit line is gained when you apply for credit cards, buy a car, get a bank loan etc. So to gain a credit line, you must have good credit and to have good credit you must have credit lines.

The truth is that no credit is worse than bad credit. This has been the problem for most young Americans. One way to eliminate this problem and build credit is to acquire a collateral bank loan and once this is paid back you automatically have a credit line. This is part of do it yourself credit repair. Using this technique one can easily erase bad credit or build new credit.

Most banks are willing to offer this service to young people because the bank knows that good credit is all that matters in the world today and building your credit report from a young age will give you a head start among your peers.

Fixing your credit by yourself using this technique is a very reliable was of credit repair and credit building. Credit card companies can be very reluctant to even offer you a low limit credit card knowing that you have no credit at all or bad credit. If one is offered it is usually a secured credit card with high initial annual fees and high rates.

It is very valuable to perform credit repair by yourself using this technique because you have more control of your credit score. Also it will be impossible to purchase a car or a home without any credit lines. A bank collateral loan requires a deposit into your bank of choice then the ability to request for a loan that is equal to the amount deposited. A reasonable term would be one year to pay back the loan on a monthly basis.

Another way of building credit is to get a secured credit card. This approach might be a bit more expensive than the previous but it is all a means to an end. A secured credit card will give you a low limit and require you to pay for the card upfront, which means that you will be charged anything from $49 to $99 on the card before you even start using it.

The point of implementing all these do it yourself credit repair techniques is to understand the inner procedures to be able to carry on the process till the end. Good luck.

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