Can I Clean Up My Credit with Starter Accounts?

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Cleaning up your credit can be a difficult process. However if you take the steps toward your credit clean up you can be on your way to a brighter financial future. One good way on the road to success in building strong finances is to to add or refine the starter or good accounts you currently have. Starter accounts are those smaller credit or loan accounts that people with no credit are usually able to get in order to start building credit. These accounts are smaller in limit and don’t require the high level of credit that other loans, like credit cards and home loans, do. These are good accounts not only for those just starting out in their credit journey, but also for those recovering from bankruptcy and other financial set backs.

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If you already have some of these accounts, make sure they are not in trouble. If they are, you need to do what it takes to get them current and the balance paid. While, some accounts on your credit report you will want to close as you pay them off, like high interest rate credit cards, starter accounts you should leave open. The open, active account with a current paid balance will reflect positively on your credit report and through your credit score. You do want to use them occasionally to keep them active and in good standing, but don’t go crazy or charge more than you can pay off in a month or two. These accounts generally have lower interest and small monthly payments, but don’t let the small payments entice you into getting in over your head.

If you need a starter account, take the time to find one that will fit well with your credit situation and your spending habits. Go for something you will use occasionally and work within the same guidelines as mentioned above when using the account. Some of the store cards have gotten more stringent in their guidelines and you may meet some resistance when looking for one. Try not to go to every store there is and apply for a card because the more times your credit is checked in a short period of time the worse it looks on your credit report and could cause the reporting agencies to think there is some form of identity theft going on.

Starter accounts can help you build your credit and recover from hard times. Take the time to research the types of starter accounts available and open only one or two and stick within the guidelines listed for best results. Working on going from bad credit to good credit status can be hard, but plenty of benefits come along in your near future.