How to build credit fast in 2020: Follow this guide below
HOW TO BUILD CREDIT FAST – 6 EASY STEPS
STEP 1 – MAKE ALL OF YOUR PAYMENTS ON TIME
35% of your score is your current and past payment history. Consistently making your payments help build your credit fast. Missed or late payments can stay on your credit record for 7 years. That’s a long time to have a negative remark.
STEP 2 – BECOME AN AUTHORIZED USER
A family member or significant other may be willing to add you as an authorized user on his or her card. Doing so adds that card’s payment history to your credit files, so you’ll want a primary user who has a long history of paying on time. A study showed that 30% of Americans are authorized users on other peoples accounts.
You don’t have to possess or use the credit card to benefit from being an authorized user on it. You just need to be added to it to get the major credit benefits.
Our chosen card issuers report authorized user activity to the credit bureaus. If you ask a family member you’ll want to make sure their company reports authorized users or your effort to build credit fast may be for nothing.
STEP 3 – PAY DOWN CREDIT CARD BALANCES
30% off your score is determined by balances owed. If you carry balances on credit cards, work to pay them down. Having balances, especially across multiple cards, can have a major negative impact on your credit.
STEP 4 – KEEP OLD CREDIT CARDS OPEN
15% of your credit score is the length of time your accounts have been open. Lines of credit that have a years of credit history help your credit tremendously. If you close those accounts, you shorten your credit history. You bring down the average age of accounts.
STEP 5 – GET CREDIT FOR THE BILLS YOU PAY
Rent-reporting services take accounts that you are already paying and put them on your credit reports, helping build a positive history of on-time payments. All credit score don’t take include these payments when calculating scores, but some do, and that may be enough to get your loan or credit card.
Experian Boost service can place your cell phone and utility bills on your Experian credit reports.
STEP 6 – GET A SECURED CREDIT CARD
Every time you apply for a loan (ie: credit card, mortgage, car loan, etc.), an inquiry to your credit is made and that lowers your credit score a few points. When you are looking into large loans like a mortgage, you will make multiple applications, but only end up with one loan. All applications within a 14-day period will count as just one application and will only lower your score one time.
Practice good credit building habits
Building your good credit score takes time and a history of on-time payments and low balances.
To have FICO scores, you are required to have at a minimum one account that’s been open at least six months and a minimum of one creditor reporting your activity to the credit reporting agencies in the past six months.
Check Your Credit Scores and Report
Several personal finance websites offer a free credit score. Look for a site that also offers free credit report information as well as educational tools such as a credit score simulator. Your credit report is your record of past credit use. Credit scores try to predict how you’ll handle credit in the future. You’ should monitor both to watch for errors and to see your efforts to build-credit fast pay off.
Some credit card issuers print FICO scores on customers’ monthly statement. Some credit card issuers offer free scores. Discover, offers a free FICO score to anyone.
Benefits of learning how to build credit fast
Get approved for credit cards, leases and lines of credit to help or start your business. Get all those things at best rates and the least amount of red tape.
KNOW WHERE YOUR CREDIT STANDS
Learn how to build credit fast credit with your personalized tips. We’ll help you fix your credit, track your progress and monitor your credit files.