looking at credit score on the phone after building credit fast

Top Six Tips For How To Build Credit Fast

Building credit is the cornerstone of financial responsibility, as having good credit can help you get home loans, auto loans, and personal loans. Taking advantage of credit-building strategies can help you secure your financial future.

In this guide from Utah Title Loans, Inc., we will explain why having good credit is essential, how to build credit fast, and resources for monitoring your credit progress. We will also explain how those still building their credit can pay for urgent expenses with car title loans, even with bad credit.

Why is Building Your Credit Important?

Your credit score is one of the first things banks, credit card companies, and landlords look at when applying for a loan, credit card, or apartment. Those with bad credit can struggle to get approved. Even if they do, it can be with high interest and insurance rates. Some landlords refuse to lease an apartment to someone with poor credit for fear of not receiving rent payments.

Building your credit so you have a good credit score can help prove your trustworthiness to financial institutions and landlords. You can benefit by getting better insurance and interest rates, getting approved for better loans and credit cards, and renting better apartments without any issues.

couple pays for home repairs after building credit fast

6 Easy Ways To Build Credit Fast

If you have bad credit, you should use credit-building strategies to increase your credit score. A better credit score will pay dividends when buying a new house or car, applying for a new credit card, or searching for a new apartment. If you want to know how to build credit fast, the tips outlined below can help with your credit-building journey.

The following are six easy credit-building tips you can try today:

1. Use Your Credit Card Responsibly

If you find a card that works best with your needs, you can use it responsibly and pay it off each month to build a positive credit history fast. You can show the credit bureaus that you can use your credit card responsibly and make payments without an issue to build your credit fast.

There are even certain credit cards specifically designed to help those with no or little credit history. Remember, you must be able to make your credit payment to build your credit fast. Avoid this credit-building tip if you are not in a financial position to make consistent credit payments.

2. Make Bill Payments On Time

Bill payment history is a crucial factor in determining a credit score. If you’re looking at how to build credit fast, pay your bills fully on time. If you cannot pay them in full each month, commit to paying on time and at least making the minimum payment.

Paying your bills in full also lowers your credit utilization rate, which shows that you don’t buy more than you can pay for and can manage your credit responsibly. If you’re struggling with making debt payments, you should adjust your budget to reduce spending and seek additional revenue streams through side hustles.

3. Keep Your Credit Utilization Low

While it may be tempting to use the full balance of your credit card consistently, this can make paying off your credit card debt on time a challenge. One way to build credit fast is to keep your credit utilization low, helping with your payments that can increase your credit score.

Most financial experts suggest using only about 30% of your credit balance. This can show credit bureaus that you can manage your credit responsibly and not overspend using your credit card.

4. Become An Authorized User For A Family Member’s Credit Card

A great way to start building your credit fast is to become an authorized user on another person’s credit card. An authorized user is someone granted permission to use someone else’s credit card, usually a family member or close friend.

The original cardholder is responsible for all credit payments. If they have good credit and always make their payments in full on time, you can benefit from their good credit habits to build your own credit. However, not all credit card companies will report credit payments for authorized users to credit bureaus. Check your relative’s credit card company does before using this credit-building strategy.

5. Monitor And Fix Credit Mistakes

Credit agencies are not perfect, so figuring out how to build credit fast may be as easy as closely reviewing your credit card charges. Contact your credit reporting agency if you see a clear issue on your statement or have a question about a charge.

If you're seeing odd charges, you may be able to file a charge dispute or freeze your social security number. Getting these mistakes fixed is one way to build credit fast.

6. Diversify Your Credit Mix

Your credit mix is how many types of accounts are linked to your credit score. Having a diversified credit mix shows credit bureaus that you can responsibly manage multiple different types of credit accounts. Credit mix serves as a 10% factor for your FICO score, so make sure to have a healthy mix of credit accounts.

For example, you could have a home loan, student loans, and credit cards linked to your credit score. Making your payments on time and managing these different credit accounts can help raise your credit score fast.

Helpful Resources To Monitor Your Credit Progress

As you continue to build your credit, you will want to know whether you are progressing well. There are resources you can use to track how much progress you’ve made and what realistic goals you could achieve in the short and long term. There are applications, programs, and advisors you could use to see how you are advancing in your credit-building journey.

The following are some resources you can use to see how well your credit-building strategies are working:

  • Free credit monitoring websites: Many websites, including Credit Karma, Mint, your bank’s website, etc., offer free credit monitoring services. They allow you to track your credit score and how it has fluctuated over time.
  • Financial advisors: Credit score advisors can meet with you to discuss your credit score and what strategies you are using to build your credit fast. They can suggest alternative methods and help you achieve your credit goals.
  • Paid credit monitoring services: Experian, TransUnion, and Equifax, the three major credit bureaus, offer paid credit monitoring on their websites. They offer identity theft protection to avoid mistakes ruining your credit score and personalized reports showing your credit-building progress.

Bad Credit Borrowers Can Get Utah Title Loans For Financial Emergencies

As you work on building credit fast, a financial emergency can be a stressful roadblock. You may not have the good credit yet to qualify for a bank loan, but Utah Title Loans, Inc. is here to help with your car title loans. This secured type of emergency loan allows those who have paid off their car to use their car title as collateral for a loan.

You could get approved for between $300 and $15,000 for your Utah title loan. Your loan amount will depend on the value of your vehicle, as determined during a quick inspection. Along with your vehicle, you must have a driver’s license or state-issued ID and a lien-free car title in your name to get approved.

The best part of car title loans in Utah is how easy the process is. We allow bad credit borrowers to get approved for online title loans, starting the process online and never needing to visit one of our store locations to receive their loan. Start the process online today, and if approved, you can receive your emergency money as soon as the same or the next business day.

man celebrates after building credit fast

Get Approved For A Utah Title Loan Today!

If you’ve ever asked yourself how to build your credit fast, the abovementioned credit-building tips should help. You can increase your credit score using these credit-building strategies to help you get approved for credit cards and loans with better interest rates.

If you encounter urgent expenses during the credit-building process that you cannot afford, Utah Title Loans, Inc. can help with our straightforward and easy process for getting approved for a car title loan. Fill out our online inquiry form today, and one of our friendly associates will guide you through the simple title loan approval process.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.