Building or improving your credit with credit cards is one of the easiest ways to improve your credit score… if you use the right cards and the right strategy. Store cards are often a favorite for those with not the best credit because they are easier to get approved for but they do not have as large as an impact on your credit score.
In many cases the store does not report to some or all of the credit bureaus. Reporting is not free and many small stores do not want to absorb the costs so they just do not report.
Of course, if you are a consumer trying to build credit, the last thing you want is for your transactions not to be reported.
A Better Strategy
It is a better strategy to use a Visa, MasterCard, Discover Card, American Express or one of the other major credit cards. All the major credit cards typically will report to the three (3) bureaus and more importantly they carry more weight when it comes to your credit score.
Of course, if your credit is poor or unestablished then it can be difficult to get approved for a major credit card.
There are steps that you can take that will get you on the right path to get the approval that you need:
- The very first thing you should do is check all three of your credit reports. Experian, Transunion and Equifax are the three major credit bureaus but they do not all always have the same information. We recommend you go through each report carefully.
- Identify errors, old collection accounts and other items that may be impacted your credit score.
- Allow your Credit Caregiver to file disputes with the bureaus for the things you believe should not be on your credit report or that are reported wrong.
In the meantime, while you are working on getting your credit report updated, you can apply for a secured Visa or MasterCard. Secured cards are a great option for people with poor credit ratings. You must make a deposit that will be equal to the amount of credit you receive. The great thing about these cards is that they report to the bureaus as a credit line from a major credit company. Make your payments on time and do your research to ensure that you choose a secured card that offers some of the perks that are available. Secured cards will have a bigger impact on your credit than a department store card will.