Most individuals trying to improve their credit score or build their credit fast are those who have the motive to get a loan, credit card, or lease an apartment/house. For all of these things, a solid credit score is required and majority of the time it is non negotiable. Although it may seem impossible to improve your credit quickly, it is not. There are plenty of different methods that can be used when trying to do just that.
Here are some ways you can build and and improve your credit fast and effective:
1. Dispute Credit Report Errors
Your credit score can sometimes be affected by negative mistakes on your report such as having someone else’s credit information mixed in with yours, payments marked as late when in reality they have been paid on time already, or even having information that is old and should not have an impact on your credit score. Correcting all of these mistakes can help you raise your score quickly, especially if there are plenty of mistakes that need fixing. If you think there are errors causing your credit score to do down, you can view your credit report here.
2. Pay Bills on time
To avoid lowering your credit score, you should get in the habit of paying your bills on time. This is the easiest way to boost your score and creates a good history of payments which look great on a credit report. Believe it or not, while this may be the easiest way to build credit, it is also the easiest and one of the most common ways to hurt your score as well if payments are not made on time. For example, If you have a great credit score and have a payment that is past due for over 30 days, you can end up lowering your score by up to 100 points! The best way to make sure that does not happen is to set reminders on your calendar on when payments are due and start recurring payments of those bills to never miss a payment again. Of course, when start recurring payments , make sure that you also have enough money in your account so that way you do not go overdraft on your bank account.
3. Pay Twice a Month
Let’s say you’ve had two tough months financially. Perhaps you need to rebuild your deck or buy a new refrigerator. Placing large items on your credit card for rewards may temporarily disable your usage (and credit score). Do you know if I called to find out the deadline? Pay two weeks before the due date and pay again just before the due date. Of course, this assumes you have the money to pay the big bills by the end of the month. If you plan to have a balance, be careful not to pay large amounts with your credit card. Compound interest will build up an ugly debt pile pretty quickly. Credit cards should not be used for long-term loans unless the card has a starting annual interest rate for purchases of zero. Even so, you should keep a close eye on your card balance and make sure you can pay before the intro period ends
4. Become an authorized user
Another way to build your credit fast is by becoming an authorized user on someone else’s credit card account such as a close friend or a family member. For this to work, the person doing the favor must have a good history with payments as well as a high credit limit on their account. This is the easiest way to get your credit started from scratch if you have never had a credit card
before. The great thing about this method is that if the account holder’s credit is extremely great, that credit will also reflect positively on you since you are both listed as users of that account. In some instances, the account holder can just give you permission to become an authorized user without ever having to actually use the card at all. As soon as you’re added to their account and your account holder has reported it to all three credit bureaus, (Equifax, Experian and TransUnion) your profile will instantly benefit from it.
5. Get a Secured credit card
Unlike traditional credit cards that do not require collateral, you must pay a deposit to open a secure credit card. This deposit amount becomes your line of credit. It may be easier to qualify for a secured credit card, whether you have bad credit or not, compared to an unsecured credit card because there is less risk to the lender. The security card can be used like a regular credit card. Buy and pay according to your line of credit. Paying on time can generate a positive payment history and increase your credit score.