It is no secret that FICO scores are extremely important to consumers these days. When it comes down to it, we no longer live in an age where consumers getting a loan is as simple as walking into the bank with a firm handshake. These days, banks look at the credit history of Americans before they are willing to loan them cash. With that said, if you are looking for a loan but, have bad or limited/no credit, chances are you are looking for the fastest way to increase your credit rating.

As I did my research, I found many websites that told Americans to build their credit slowly and steadily. Many of these websites tell people that the best way to build credit is for people to get a cell phone or utility bill using their identifiable information. However, this process can take 3 to 5 years before it actually has any improvement on the FICO scores that consumers carry around with them. If you are like most consumers, you don’t have 3 to 5 years. Most people want to build their credit scores quickly.

This lead me to do a bit more research on credit scores. What I found was that people don’t have to wait 3 to 5 years for good credit. As a matter of fact, if done properly, consumers can have good credit in as little as 12 months! So, I bet you are wondering how this all works. Well, let’s look into FICO scores a little further together.

When Americans really understand credit ratings, they understand that credit ratings are based on how consumers react to past debts. Therefore, without having any debt, it’s almost impossible to have good credit. With that said, cell phones and electric bills just aren’t enough for people to show banks how they would react to credit and debt.

When I thought about this, I started to think of how consumers could obtain a loan for the purpose of building their credit ratings. The answer was secured charge cards! Secured credit cards are specialty charge card accounts that are designed for Americans with bad or limited/no credit scores. When people get a new secured credit card account, they must first place a security deposit with the lender. This security deposit once placed will then become the credit limit given to consumers. So, using secured credit cards, people borrow their own money alleviating the bank of any risk.

I know what you may be thinking, “I need credit to borrow a lenders cash, why would I want to borrow my own”. Well, when we go back to looking at credit scores, we know that Americans must have had debt or revolving credit to have good FICO scores. Therefore, by people using secured credit card accounts to borrow their own money, they are showing lenders and credit reporting agencies how they will react when a credit line is extended to them.

If consumers choose to use secured charge cards to build their FICO scores, it is important to use the secured credit card accounts properly. After about 12 months of proper use of secured credit cards, people will be refunded their security deposit and their credit card account will then become an unsecured charge card. This is the point in which consumers find astonishing increases in their FICO scores!

I hope that this article has answered all of your questions, please come back to read more of my work!

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