It can be difficult for some people to build credit fast, especially when they have no or a bad credit history. This process is not only time-consuming but also frustrating. Having good credit is necessary for a variety of financial goals, including renting an apartment, buying a car, securing a mortgage and even getting a cell phone contract.
You can speed up the process by using smart tactics. Here are the best ways to improve your credit score and build credit quickly:
1. Pay all your bills on time.
The single most important thing that can affect your credit rating is your ability to pay your bills on schedule. It's a mistake to pay your debts late. This can damage your score for several years.
2. Avoid carrying a high balance on your credit card.
Credit utilization ratio should be kept as low a possible. It is the percentage you use of your available credit for revolving debts, such as lines of credits and credit cards. A credit utilization ratio over 30% can affect your credit rating.
3. You can ask your credit card company for a larger credit limit.
You might qualify for a bigger credit line, if you have consistently paid your bills on-time and are a loyal customer. Check your card's policies before you request an increase. Some card issuers may perform a hard credit inquiry that could temporarily lower your score.
4. A secured credit card can help you to build up your credit quickly.
If you're new to credit, using a secured card can be an easy way to build credit fast and establish a positive payment history. Secured credit card offers a smaller credit limit, in exchange for the security deposit. After responsible usage, you can usually trade your secured card in for an unsecured.
5. Benefit from the free services provided by credit agencies.
There are many resources that you can use to establish your own credit. This includes websites where you can request free copies your credit reports, from Equifax Experian TransUnion. Credit agency services can be used to correct inaccurate information or dispute it.
6. Credit report cleaning is a great way to fix errors and late payments.
It's not a secret that mistakes in your credit report can have a negative impact on your score. They are easy to overlook and to keep hidden. To avoid this, it is important to review your credit report for any errors. If you find any, file a dispute and have them rectified.
Taking steps to resolve any errors or missing information on your credit report can have an immediate positive impact on your credit. Depending upon the number of mistakes and your credit profile, disputing them can be a fast way to increase your score.