It's not uncommon to find people with bad credit. But don't fret! There are ways to increase your credit score so you can get approved for loans and receive better interest rates.

If you have a low credit history, you are less likely to be approved for loans and credit cards.

  1. Check your credit report: your report will tell you where and how to improve.

  2. Keep your past financial obligations up to date: this includes student loans and car loans, as well as making sure you pay all bills on time and in full.

  3. Apply for a secured card: the card issuer will deposit money into an account that is linked to the card, meaning that you will need to provide collateral such as cash or a home equity line of credit (HELOC).

One way to start establishing a good credit history is by applying for a secured credit card. Secured credit cards are designed to provide the applicant with the opportunity to build their own credit profile.

Secured cards typically require applicants to deposit an upfront sum of money into an account that is linked to the card. The deposit amount must typically be at least $200 but can sometimes be as high as $5,000 or more. The bank then issues a line of credit for the amount deposited in the account. The cardholder can use this line of credit up to its limit without any risk or worry about paying it back

Another way to increase your credit score is by asking your employer if they offer any company-branded cards which you are eligible for.

Almost everyone has a credit history, but not everyone has a good one. A good credit history usually means that you can make low-interest loans and get the best rates on the things you buy. It also means that you can get loans or credit cards without jumping through hoops like proving your income or getting a co-signer. If you don't have enough of a history to show, there's no need to worry. You can build your credit by taking these steps:

  1. Always pay your bills on time

  2. Check your report for errors

  3. Get in the habit of using just 10% of your available credit

  4. Pay off any balances on existing cards

  5. Stay away from using your credit card for matters that are not necessary. If you don't have the money to cover the expenses, then don't use the card.

  6. Always pay off any card balances in full every month - do not get into debt because this will hurt your future attempts to improve your credit score. If incase if you can’t make the full payment. Make sure you pay minimum balance within time.

  7. Create an emergency fund to prevent the need for high-interest loans when unexpected expenses arise.

  8. Continue to follow these steps for 5 years

There are other ways too that you can increase your credit history. Here are some examples of how you can do this:

  1. Request a credit card. Make sure to use it responsibly so you can build your credit score with the lender by making monthly payments on time and in full each month and paying your balance in full before the due date.

  2. Apply for loans for larger purchases like homes, cars, or college tuition - just remember to maintain good credit during repayment periods so you can continue to qualify for new loans in the future.

  3. Apply for a personal loan to consolidate debt or cover unexpected emergencies - just remember that if your debt-to-income ratio is high, you may not be approved for a personal loan because lenders don't want to offer too much cash upfront