Credit scores impact more than just loan approvals. They can affect your ability to rent an apartment, get a good insurance rate, or even land a job. But what if you don’t have much credit history or your score took a hit and you’re trying to recover?

The good news is that building or rebuilding credit is possible. Here are three options for a first start or a fresh start to establishing your credit and improving your score.

1. Use a Shared Secured Credit Card

A shared secured credit card offers a manageable start. You provide a deposit (usually equal to your credit limit), and you use the card just like any other credit card, making purchases, paying them off, and building credit along the way.

It’s a safe way to show you can handle credit responsibly. Because your activity is reported to the major credit bureaus, it can have a positive impact on your score.

Tip: Keep your balance low and pay it off in full each month to get the best results.

2. Try a Shared Secured Loan

A shared secured loan also uses your savings as collateral. The difference is that you get a lump sum up front and repay it over time.

This can be helpful to add a mix of credit types to your report. Plus, this can establish a history of installment payments, which can influence your score differently than credit card use, showing that you pay on time over time.

3. Go quick and easy with Zinero

Need money in a pinch? Zinero is quick and easy, available 24/7/365.

Especially for unexpected expenses, a small installment loan like Zinero can help to establish credit. It doesn’t require a credit check, no hard pull, so it won’t hurt your credit score to apply. It provides fast access to funds, within seconds of applying.

These types of credit-building quick cash loans report your payments to the credit bureaus. That means if you stay on schedule with your payments, you’re not only covering a short-term expense, but also you’re building long-term progress.

Note: Zinero is available to Zia members and has specific eligibility requirements, including membership length and age. See credit union for details.

Monitor Your Progress

Building credit takes consistency, and it helps to know where you stand. With tools like SavvyMoney®, available through Zia Credit Union’s online banking platform, you can monitor your credit score, receive alerts about changes, and get tips to improve your financial health. Try our activity and learn more!

Tips: Consider These

·Credit bureaus typically require at least six months of payment history on a credit account to generate a credit score (especially for FICO).
For first-time borrowers with little to no credit history, keeping a loan open for at least six months and making on-time payments helps build a credit profile.
Paying off the loan too early—before six months of history is established—can result in no score being generated, or delay the process of building credit.

The Bottom Line

If you’re starting your credit journey or looking to recover from past challenges, it’s important to know that better options exist. Secured credit products and small installment loans can be used as steppingstones toward stronger credit and ultimately, more financial freedom.

Credit isn’t built overnight, but with the right habits and tools, you can make real progress starting today. Let’s light your journey!

Keep in Touch

Have more questions? Just reach out! We’re here to help.

Visit any of our branches, give us a call, send us an email on our website, or message us in your online or mobile account.

We are here to Light the Journey for you and for those you love.

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Credit Builders: 3 Tools to Build or Rebuild Your Credit