How to build your credit fast can be done in different ways and it’s not a difficult process at all. if your credit score is very low and you find it uncomfortable, there are so many ways you can build your credit and earn good points.
How to Build Your Credit Fast
Building your credit score into a good one is very important and beneficial and also establishes your credit. Well, having a good and high credit score opens the door to lower interest rates and better opportunities for loans and credit in the future.
Establishing a good credit score helps you secure better which can eventually result in tens of thousands of dollars in savings over the life of a 30-year mortgage. With a high credit score, you can be able to make an application for any credit card of your choice without going through any difficult process.
However, there are several ways or strategies you can follow to improve or build your credit fast and these ways are not difficult if you follow them carefully. So, these steps or guidelines you need will be listed below.
- Request for higher credit limits.
- Make bill payments on time.
- Make use of a secured credit card.
- Be an authorized user.
- Remove Credit report errors.
- Report your rent and utility payments.
- Increase your credit mix.
- Make dealings with a collections account.
These are some of the strategies or ways to build your credit and they would be explained further for more understanding.
Request for Higher Credit Limits
Your overall credit utilization lowers instantly once your credit limit goes up and your balance remains the same which leads to an improvement in your credit. More so, you have a good shot at getting a higher credit limit if your income has increased or the addition of more years to a positive credit score experience.
However, utilization is among and also the main factor in building credit scores and is definitely highly influential. Well, you can make contact or have access to your credit card issuer to make inquiries on getting a good or high credit limit.
Checkout: How to Build Credit Fast in Four Ways
Make bill payments on time
Several strategies to improve your credit score can never be possible if you always carry out or make late payments. Late payments of bills mostly in some cases can be recorded for a long time in your credit reports for up to 8 years.
Furthermore, if you, unfortunately, miss a payment for about a month or more, just quickly call your creditor. And if the creditor has sympathy or considers not reporting to the credit bureaus, then just carry out payment as soon as possible.
Early payments of your bills are known as a large scoring process or mean in VantageScore and FICO credit scoring systems. Setting up account reminders and automatic payments that cover minimum credit bill payments can prevent you from late payments. Also, the addition of positive credit bill payments can boost your credit score.
Make use of a secured credit card
The use of a secured credit card is certainly another way to improve your credit score. A secured credit card type is usually backed up by a cash deposit whereby the amount of the deposit is the same as the credit limit and is usually deposited or paid early or upfront.
The card usage is used just like that of a normal credit card and payments that are made on time help you build a better credit score.
This means of building credit is best for someone that is new with credit accounts or a person that wants to erase his or her previous credit score history that is not good into a positive one. Also, you can consider a secured credit card that makes a report of your credit activity to the major credit bureaus.
Be an authorized user
You can become an authorized user if a friend or relative of yours has a high credit limit and good history in their credit card account. Well, it can be possible when your account is added to that of your friend’s or relatives’ credit card reports and their credit limit will be of good help to your credit utilization.
This process is known as credit piggybacking whereby an authorized user status allows you to benefit from their payment history to build your own credit history positively and be an authorized user also. This authorized user means do not need you to make use of their card or account number before you can improve your credit score.
Also, See: How to Login to Legacy Credit Card Login
Remove Credit report errors
The process of removing credit errors from your credit report can make you improve your credit score. Any mistake on any of your credit reports can lead to a decrease in your credit score. If someone’s credit activity is mixed with yours or you made late bill payments on your report or other negative information, you need to dispute them from your credit report to improve your credit score.
Acquire credit for rent and utility payments
You can acquire credit to improve your credit score through rent reporting services. Rent payments are considered by other credit scoring systems except for Vantage Score. So, if a creditor looks at your reports that would be an inclusion of rent records, and also a long consistent payment can help improve your score.
Increase your credit mix
You can increase your credit score through additional credit accounts in good standing and if it is a credit typo you don’t have already. Also, if you have loans and a few credit cards you can get a new credit card to improve your credit mix. This will then reduce your credit utilization and build or make provisions for your available credit.
Make dealings with a collections account
The threat to be sued over debt can be reduced through the process of a collections account. Then you can make a report and persuade the collection agency to stop reporting your debts once you pay them.
However, you can remove the collections account from your credit score reports if they are outdated and are in some cases not accurate. Also, you will definitely need to read your credit reports and carry out a plan to handle the collections account which is listed.
With this process, you can be able to improve your credit score. These are the guidelines you need to improve or build your credit score fast and has also e explained further for better understanding.
Frequently Asked Questions
In this aspect of the article, some frequent questions that are been asked on how to build your credit fast will be given and answered.
How Long Does It Take to Build Up Credit to 700?
It takes about six months of credit activity to establish and build a good credit score that is about 700 and more to build it up to 850.
Can I Pay Someone to Fix My Credit?
Yes, you can pay someone to build your credit but you can build your credit yourself instead of you paying someone or a credit repair company to build your credit.
How Much is Credit Repair for a Month?
Credit Repair fees through a company are about $19 to $149 per month but it actually does not cost much if you handle it by yourself.