How To Build Credit Fast
Building credit is the cornerstone of financial responsibility. If your credit isn’t considered “good,” you will likely end up with high-interest rates and terms on your mortgage or credit cards.
Credit also impacts everything from qualifying for financial products, such as loans, to whether you receive a job offer. When you build your credit, you build up a secure financial future.
Even if you have had what’s considered bad credit for a long time, there are many approaches to figuring out how to build credit fast and improve your credit score.
Easy Ways To Build Credit
Get A Credit Card
It may feel counterintuitive to apply for a credit card when thinking of how to build credit fast. But if you find a card that works best with your needs, use it responsibly, and pay it off completely each month, you’ll begin to build a positive credit history fast. There are even certain credit cards that are specially designed to help those with no or little credit history.
Or Become An Authorized User
If you’re hesitant to open a credit card, another option is being named an authorized user on another account, perhaps one used by a parent, friend, or significant other. Authorized users can improve their credit score with low risk if the person who owns the account has good credit.
Pay Bills On Time — And In Full
Bill payment history is a very important factor in determining a credit score. If you’re looking at how to build credit fast, look at your bills. If you are unable to 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 rate of credit utilization, which shows that you don’t buy more than you can pay for and that you can manage your credit responsibly.
Find Different Ways To Boost Your Credit Score
Did you know that if you reliably pay your rent on time every month it could boost your credit score? While FICO credit scores usually don’t consider rental payments, you may be able to change that.
Certain services, such as Rent Reporters and Rental Kharma, report rental payment histories to bureaus that formulate credit scores. There is a fee to use such services and your landlord usually must formally approve it, but it may be worth it.
Credit agencies are not perfect, so figuring out how to build credit fast may be as easy as closely reviewing your credit card charges. If you see a clear issue on your statement or have a question about a charge, get in touch with your credit reporting agency.
You may be able to file a charges dispute or decide to freeze your social security number if you’re seeing odd charges.
Try A Secured Credit Card
An especially effective way to build credit is by scoring a secured credit card. With a secured credit card, you either pay a yearly fee or make a deposit of a few hundred dollars into a secured account. You’ll need to make monthly payments on time, and if you do so you’ll get that first security deposit back when you close your account and see your credit score rise.
Don’t Move Around Debt
It’s tempting to move your debt from one card to another to save on interest, but it is not a good way to improve a credit score. Instead, it’s better to end that practice and focus on just paying down what you owe each month through a responsible savings plan.
Squash A Financial Emergency Fast With An Installment Loan
As you work on building credit fast, a financial emergency can be a stressful roadblock. An installment loan is an option for addressing matters such as an expensive medical bill, a needed home or car repair, or last-minute but necessary travel.
Installment loans offer financial assistance that is paid off over time in a set number of payments. It can take as little as 30 minutes to qualify for an installment loan of up to $1,500 at Utah Title Loans, Inc. The best part: Once you qualify and are approved, you receive the cash you need either the same day or the very next business day.
It all starts online. Simply fill out the short installment loan inquiry form. A loan representative from the Utah Title Loans, Inc. location closest to you will give you a call to discuss installment loans, what you need to qualify, and answer any questions you may have. They guide you through the rest of the quick and easy process.
Get Started Today
If you’re trying to figure out how to build credit fast, taking care of a sudden financial emergency quickly is essential. To score an installment loan, just start online, give us a call, or visit us today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.