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This can make achieving financial goals andwealth creationchallenging at best.
GOBankingRates asked two banking experts to provide insight on how to break credit invisibility.
Also, learnhow to boost your credit score fast.
What Does Being Credit Invisible Mean?
Credit invisibility is what it sounds like: Youre unseen to the credit system.
This makes it difficult to access credit.
How Credit Invisibility Impacts Wealth Building
Somewhat paradoxically, credit ties to wealth creation.
A credit score directly impacts interest rates on mortgages and other loan products.
It can also determine rates on services or even if you receive a job.
Credit is used by landlords, insurance companies, employers, etc.
These are some strategies to follow to become credit visible.
A secured credit card is a good alternative for those without any credit history.
They provide an on-ramp to credit for people who are credit invisible.
Get Credit for Paying Bills on Time
Not all monthly payments are reported to credit agencies.
Even if you pay all your bills on time, it does little to help a credit file.
Thankfully, there are some options to get noticed for your efforts.
Even small steps like this will help.
A responsible loved one can be a great option to help you build credit.
Most credit cards allow customers to add authorized users, which can be helpful to underserved individuals.
Just ask someone who responsibly uses credit to prevent this strategy from backfiring.
Apply for a Store Card
Store credit cards are notorious for having higher interest rates.
However, some stores make it easier to qualify for credit.
If you have a retailer or gas station you frequent, this may be a good choice.
Some retail companies provide store credit to people who are credit invisible.
You just have to be careful not to overspend using a store credit card, said Williams.
Turning the tide to become credit visible is possible.
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