 TITLE: How Secured Loans Can Help Your Credit CONTENT: Are There Other Options for Building Credit?\n--------------------------------------------\nSecured loans aren't the only method you can use to build or repair credit. There are other options you can use in conjunction with or even instead of them.\n*   **Apply for a low-limit credit card.** A credit card issuer may take a chance on you if the limit is very low. Prove you can handle the account well by paying the balance in full and on time every month, and the issuer may increase the limit.\n*   **Get a secured credit card.** As with a secured loan, you put down collateral on a secured credit card. In this case it's a cash deposit, which in turn will likely become your credit limit. If you don't pay your bill, your card issuer simply keeps some or all of your deposit. Some credit card issuers will return the deposit to you and convert you to an unsecured card after you've made a number of on-time payments.\n*   **Become an authorized user.** If you know someone who has a credit card and treats it right, you could ask to be added to the account as an authorized user. That person's account activity will appear on your credit report, thus helping your own credit history. As an account guest, you won't be liable for the payments or any resulting debt, but should work out spending limits and a reimbursement plan with the primary cardholder.\n*   **Open a loan with someone who has good credit.** Becoming a cosigner with a person who has great credit can help jumpstart your own credit history. Both of you will be equally responsible for the loan, though, so it is essential that the payments are made on time. If they aren't, the lender can pursue both of you for the debt.\n*   **Obtain a student loan.** If you're a college student, positive payment history on federal student loans will help build your credit. Of course, never take out a student loan with the sole purpose of building credit, as there are much more cost-effective ways to do so. Keep making on-time payments to any student loans you already have and you can be rewarded in the long term.\n*   **Take out an auto installment loan.** If you're planning on financing a car, it's possible to obtain an affordable interest rate on an auto loan even without excellent credit. On-time payments on an auto loan will help you build your payment history. With an auto loan, the car itself is the security, so if you don't make your payments, it can be repossessed.\n*   **Participate in a nonprofit lending circle.** Check out nonprofit organizations, such as the Mission Asset Fund, that have stepped up to help low-income people build their credit. They are easy to qualify for and the lenders will report your activity with them to the credit bureaus.\n*   **Put your rent on your reports.** Some for-profit companies will send your regular rent payments to the credit bureaus. There is a fee involved, but it may be worth the cost if you really want lenders to see that you've been making regular payments to your landlord.\nBear in mind that credit scores calculate not just your payment history, but also your credit utilization ratio, which is the amount you owe on your credit cards relative to your total credit limit. A ratio above 30% will hurt your scores, and the lower the ratio, the better. Other credit score factors include the length of time you've used credit and the different types of credit products you carry. So mix it up and treat all the loans and credit cards you have responsibly!\nFinally, you can try Experian Boost™† . By signing up for this free service, you can have your cellphone, utility and other telecom bills listed on your credit report. Those payments will then factor into your Experian credit report and possibly lift your scores.\nOnce you've obtained more attractive credit scores, your borrowing options will expand to include the many premium products that come with low interest rates and, for credit cards, valuable rewards. END