How to Build Credit Fast With Multiple Secured Loans

Secured credit loans are excellent for building credit, and also are used by people who are rebuilding their credit. People applying for credit for the first time usually find that secured loans are very easy to qualify for, and the same is true for those recovering from credit problems. The easy qualifying exists because terms of the loan remove much of the risk for the lender. The most important key for the borrower is making sure the payment history on the loans is reported to the major credit bureaus.

Instructions

1

Deposit money into a savings account at a bank or credit union. The deposit acts as collateral for a secured loan. The money on deposit is held by the bank until the loan is paid off. This protects the bank if you default on the loan.

2

Tell a loan representative that you wish to borrow money against your savings. Confirm that the bank will report your payment history to major credit bureaus TransUnion, Equifax and Experian. Fill out necessary paperwork to borrow the money on deposit.

3

Deposit the proceeds from the loan into the savings account and instruct the bank to electronically draft payments each month. This guarantees on-time payments.

4

Open a second secured loan account after a few months, and then another in several more months following the same process. Confirm each time that credit bureaus will receive regular updates about your payment history.

5

Note your progress by regularly reviewing your credit report and score. Obtain your credit report from the Annual Credit Report website -- the only site authorized by the Federal Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act. View and print your report from the website.

6

Order your credit score separately, for a fee by including instructions included with the credit report. You can order free copies of your credit report for free three times each year and check your credit score as well.