How To Build Credit Fast: 7 Simple Strategies (2024)

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Most people decide to improve their credit score when they’re preparing to apply for credit or if they’ve struggled to qualify for a credit card, loan or lease. In these instances, you want to build your credit as quickly as possible. While there’s no magic fix for poor credit, the solutions can be simple.

Use these seven strategies to quickly build a rock-solid credit score.

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1. Pay All Your Bills On Time

On-time payment history is the most important factor when building credit. Your payment history, which is one factor that makes up your FICO score, accounts for 35% of your FICO credit score. This means you should always aim to pay your bills on or before the due date.

Setting up automatic payments is the easiest way to pay bills on time. You’ll connect your bank account to the provider, who will automatically charge your account on or before the due date. Creating automatic payments means you won’t have to worry about missing a payment, as long as you have enough money in your bank account to cover the bill.

If you choose to not use autopay and realize you’ve missed a payment, contact the lender or bill provider and rectify it as soon as possible. Only late payments over 30 days are reported to the credit bureaus. The later the payment, the more it will impact your score.

2. Get a Secured Credit Card

A secured credit card is designed to help borrowers build their credit.

When you sign up for a secured card, the provider will require a cash deposit to serve as collateral and act as the credit limit. For example, if you put down $200, you’ll have a $200 credit limit. If you don’t pay your credit card bill, the card company can take the deposit.

You can use a secured card at the same in-store and online retailers where you would use a traditional credit card. However, your credit limit will typically be lower.

With a smaller limit, you should only use a secured card for small purchases well below your credit limit. This is because your credit utilization ratio, which represents how much of your total available credit you use in a given time, is the second most important credit factor. For example, if your current balance is $100 and your credit limit is $200, then your utilization ratio is 50% ($100/$200).

As a rule of thumb, it’s best to keep your credit utilization ratio below 30%. However, a ratio below 10% will result in an even better score. So if you open a secured credit card, multiply your total limit by 30% and never go above that at a given time. For example, if your limit is $200, don’t use more than $60 at a time ($200 x 30%).

3. Become an Authorized User

An authorized user is someone who is added to an existing credit card account. Authorized users can use the card but will not be responsible for any payments. When you become an authorized user, the card’s history will appear on your credit report. If the main cardholder has made on-time payments, then your credit score may receive a boost.

4. Pay Off Any Existing Debt

To reduce your credit utilization ratio quickly and improve your score, use the debt avalanche or debt snowball method to pay down existing debt:

  • With the debt avalanche method, you focus on paying off your highest-interest debt first, followed by the debt with the next highest interest rate, and so on. However, be sure to make the minimum payments on any other cards in the process to avoid any penalties.
  • The debt snowball method, on the other hand, focuses on paying off your smallest balances first while still meeting the minimum payment requirements for your other cards. This method is meant to help build momentum as you get a sense of achievement from paying off one card after another.

5. Apply for a Credit-builder Loan

A credit builder loan is geared toward borrowers with no credit history who don’t want to open a credit card.

To use a credit builder loan, you first decide on the amount and term. Instead of receiving the money upfront, every month you make a payment to the lender, and they report it to the credit bureaus. When the term is completed, you receive back the amount you paid, minus possible fees.

If you made payments on time, you should have improved your payment history and therefore boosted your score.

6. Request a Credit Limit Increase

Paying down your debt is not the only way to decrease your credit utilization ratio. Another strategy is to increase the credit limit on your credit cards while keeping your balance at or below the same amount.

To request a credit limit increase, contact your card provider. It may run a credit check before approving the limit, which can ding your score by up to five points. Remember to not get greedy with a larger credit limit. If you decide to overuse your new limit, you’ll defeat the purpose of this strategy.

7. Consider Experian Boost or UltraFICO

When you have no credit history, adding extra accounts can boost your score. You have two options that could help you: Experian Boost and UltraFICO:

  • Experian Boost evaluates your utility, streaming and other accounts and adds on-time payments from these accounts to your Experian credit report. If a lender or card company uses another credit bureau, they won’t see any of your Experian Boost accounts.
  • UltraFICO is a program from FICO that adds information about your bank account balances, cash flow and bank transactions. However, not every lender uses or accepts the UltraFICO score.

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Frequently Asked Questions (FAQs)

How do I get my credit score up 100 points in one month?

Increasing your credit score by 100 points in a single month is almost impossible, especially if you’re starting from nothing. However, if you have a significant mistake on your credit report, like a default that never happened or a credit card that doesn’t belong to you, removing it can boost your score significantly.

How long does it take to build a 700 credit score?

It can take several months to increase your credit score, and even longer if you have bankruptcies, defaults, late payments or liens on your report. The exact time frame to build a 700 credit score depends on the person.

What is the quickest way to build your credit?

The fastest way to build a credit score from scratch is to open a credit card, maintain a credit utilization ratio below 10% and pay it off every month.

If you already have a credit card, aim for a credit utilization below 10% and never miss a payment. If you have a loan, like an auto loan or student loan, make payments on time and avoid opening new loans. It will still take several months to build your credit, so follow the steps above and be patient.

How To Build Credit Fast: 7 Simple Strategies (2024)

FAQs

How To Build Credit Fast: 7 Simple Strategies? ›

Experts advise keeping your use of credit at no more than 30 percent of your total credit limit. You don't need to revolve on credit cards to get a good score. Paying off the balance each month helps get you the best scores.

How can I raise my credit score 7 points fast? ›

  1. Pay credit card balances strategically.
  2. Ask for higher credit limits.
  3. Become an authorized user.
  4. Pay bills on time.
  5. Dispute credit report errors.
  6. Deal with collections accounts.
  7. Use a secured credit card.
  8. Get credit for rent and utility payments.
Mar 26, 2024

How do I build credit ASAP? ›

9 ways to build credit fast
  1. Understand the concept of credit. ...
  2. Check and monitor your credit. ...
  3. Dispute credit report errors. ...
  4. Open a credit card account. ...
  5. Take out a credit-builder loan. ...
  6. Become an authorized user. ...
  7. Request a credit limit increase. ...
  8. Keep a mix of different account types.
Apr 11, 2024

How can I raise my credit score 100 points overnight? ›

  1. No, it is not possible to raise your credit score overnight. ...
  2. Improving your credit score typically requires responsible financial behavior over an extended period. ...
  3. Pay Your Bills on Time: Consistently make on-time payments for all of your credit accounts, including credit cards, loans, and utilities.
Oct 25, 2023

What is the best strategy to build a good credit score? ›

Experts advise keeping your use of credit at no more than 30 percent of your total credit limit. You don't need to revolve on credit cards to get a good score. Paying off the balance each month helps get you the best scores.

Can I raise my credit score 200 points in 30 days? ›

While you can improve your credit score by 200 points in 30 days, it is also essential to remember that the improvement is based on your current credit status and mix. Some might experience quicker improvements, while others may need more time based on their unique credit histories and financial situations.

How to get a 700 credit score in 30 days? ›

15 steps to improve your credit scores
  1. Dispute items on your credit report. ...
  2. Make all payments on time. ...
  3. Avoid unnecessary credit inquiries. ...
  4. Apply for a new credit card. ...
  5. Increase your credit card limit. ...
  6. Pay down your credit card balances. ...
  7. Consolidate credit card debt with a term loan. ...
  8. Become an authorized user.
Jan 18, 2024

What raises your credit the fastest? ›

The fastest way to get a credit score boost is to lower the amount of revolving debt (which is generally credit cards) you're carrying. The typical guidance from personal finance experts is to use no more than 30% of your credit limit, which applies both to individual cards and across all cards.

How to fix your credit yourself? ›

Here are 11 steps you can take on your own to steer your credit in the right direction.
  1. Check Your Credit Report. ...
  2. Dispute Credit Report Errors. ...
  3. Bring Past-Due Accounts Current. ...
  4. Set Up Autopay. ...
  5. Maintain a Low Credit Utilization Rate. ...
  6. Pay Off Debt. ...
  7. Avoid Applying for New Credit. ...
  8. Keep Unused Credit Accounts Open.
Apr 22, 2023

What boosts credit scores the most? ›

Factors that contribute to a higher credit score include a history of on-time payments, low balances on your credit cards, a mix of different credit card and loan accounts, older credit accounts, and minimal inquiries for new credit.

How to boost transunion score fast? ›

Here are 10 ways to increase your credit score by 100 points - most often this can be done within 45 days.
  1. Check your credit report. ...
  2. Pay your bills on time. ...
  3. Pay off any collections. ...
  4. Get caught up on past-due bills. ...
  5. Keep balances low on your credit cards. ...
  6. Pay off debt rather than continually transferring it.

How to boost credit in one day? ›

How to Raise your Credit Score 100 Points in a Day?
  1. Track your credit report. ...
  2. Lower your credit utilization rate. ...
  3. Avoid default payments. ...
  4. Don't close your credit accounts. ...
  5. Request for late payment forgiveness. ...
  6. Report rent and utility payments. ...
  7. Become an authorized user. ...
  8. Don't apply for multiple credits.
Jul 8, 2022

What are the 5 C's of credit? ›

Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

What is the number one way to build credit? ›

Try to make your payments on time and pay at least the minimum if you can. Paying credit card or loan payments on time, every time, is the most important thing you can do to help build your score. If you are able to pay more than the minimum, that is also helpful for your score.

How can I improve my credit score from poor to good? ›

How to Improve Your Credit Score
  1. Review Your Credit Report. ...
  2. Set Up Payment Reminders. ...
  3. Pay More Than Once in a Billing Cycle. ...
  4. Contact Your Creditors. ...
  5. Apply for New Credit Sparingly. ...
  6. Don't Close Unused Credit Card Accounts. ...
  7. Be Careful Paying Off Old Debts. ...
  8. Pay Down “Maxed Out” Cards First.

How many points does your credit score go up each month? ›

It all depends on your unique situation and the specific actions you're taking to improve your credit. Realistically, you probably won't see your credit score increase by more than 10 points in a month.

How long does it take to go from 700 to 750 credit score? ›

Generally, it takes around 4-12 months to reach the point where you can apply for a loan. It will take a few months to get to 750 if your score is currently somewhere between 650 and 700. However, if you have a credit score of less than 650, it will take more time to improve the score.

Why would my credit score drop 7 points? ›

Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

Can I pay someone to fix my credit? ›

Yes, it is possible to pay someone to help fix your credit. These individuals or companies are known as credit repair companies and they specialize in helping individuals improve their credit score.

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