How To Build Credit Fast
May 31, 2022 | Emma Frost
Good credit is one of the biggest keys to financial stability. And it’s easier to achieve than you may think. By making a few strategic financial decisions, you can not only establish good credit but establish it quickly. Here’s how to build credit fast.
Credit Building Strategies
Get A Clear Picture Of Your Current Credit
You can’t figure out how to build credit fast if you don’t have a good understanding of your present credit status. The first move to make is to get access to your free credit reports by reaching out to the three credit reporting agencies: TransUnion, Equifax, and Experian.
Review them thoroughly, check for any report errors and determine what needs the most work. Your credit report should include details such as card balances and accounts, history of on-time payments, and your debt history.
It will also include the balances due on open accounts. Your overall credit report should reveal significant pathways for how to build credit fast.
Pay Your Bills On Time
The best strategy for how to build credit fast is always paying your bills on time. Your on-time payment record is the single biggest factor used to calculate your FICO credit score. Late payments can reportedly remain on your credit report for more than 7 years.
Be sure to organize all of your bills each month by the due date and set reminders for yourself when payments are due. There is often the option to set up automatic payments for monthly bills, including credit cards and utilities.
Some companies even offer late payment forgiveness if you have a good payment history.
So, what should you do if you miss a payment? If it’s over 30 days, call the creditor, tell them why you missed the payment, and see if there’s a possibility of not having the late payment reported to the credit bureaus.
The longer you wait to pay, the more negative of an impact there will be on your credit score.
Come Up With A Balance Payment Plan
A good portion of your credit score is determined by your credit utilization or the percentage of your credit limit on a card being used at any given time. That’s why lowering your credit card balances is one of the top approaches for how to build credit fast.
A good rule of thumb is using less than 30% of your card’s limit, but the lower the better; those with high credit scores typically use less than 10% of their limit.
You can build your credit fast if you commit to paying down as much of the balance of your card during each billing period, or even pay multiple times during a month.
Try A Secured Credit Card
There are a few other ways to both build and rebuild your credit, but a secured credit card often gets the job done. A secured credit card involves paying a cash deposit upfront, which is typically the same amount as the credit limit.
You use a secured credit card the same way you’d use a traditional credit card. Making the on-time payments then goes a long way toward how to build credit fast. A secured credit card is a good way for someone with credit inexperience or a history of mismanagement to establish a more positive credit history.
Diversify Your Credit
Mixing up the way you use credit can help build credit faster. If you only use one credit card, consider getting another that is low risk. If you’ve only used credit cards, try getting a loan. Such a mix also helps lower your credit utilization since you have more widespread available credit at your disposal.
Get Help For A Financial Emergency With A Bad Credit Title Loan
Having bad credit can impact your ability to get loans. Some lenders such as banks and credit unions can even instantly disqualify you if you don’t have good credit.
At New Mexico Title Loans, Inc. we think differently. We encourage those with all types of credit history to pursue a bad credit title loan with us, including those in the middle of figuring out how to build credit fast.
For those who qualify, a title loan can offer up to $10,000 to help with a pressing financial emergency. The process is quick, too. You can qualify in as little as 30 minutes and when you are approved you get the cash you need the same day or the very next business day.
You can get started online. Fill out the short title loan form on our homepage and a loan representative will give you a call to walk you through the rest of the quick process.
Get Started Today
How to build credit fast involves making some strategic financial decisions, including taking care of a financial emergency with a bad credit title loan. Start online, give us a call, or visit us today. We’re here to help.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.