How To Build Credit Fast and Easily

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If you’re starting from scratch or trying to bounce back, building credit doesn’t have to take years. You can open a secured card, pay bills on time and keep your balances low — and start seeing results in just a few months. Here’s how it works, step by step.

How Long Does It Take To Build Credit?

How long it takes to improve your score or build credit depends on your starting point. Here’s what to expect based on different scenarios:

• Zero or no credit: You can build a fair score — around 600 — in about six months by using tools like secured cards and reporting on-time payments.
• Fair to good credit (580 to 739): Paying down debt and correcting errors on your credit report may raise your score in as little as one to three months.
• Very good to excellent credit (740 and above): If your score is 740 or higher, maintain it by continuing healthy habits like using credit regularly and making on-time payments.

Take a look at these common goals and timelines:

5 Strategies To Build Credit Quickly

With a few simple steps, you can build credit fast, even if you don’t have any right now. Here are the best strategies for how to build credit.

1. Secured Credit Cards

Secured cards function like regular credit cards. You use the card to buy items and then pay it off. The key difference is that you must make a cash deposit at the bank, which serves as your credit limit. For example, if you deposit $300, your secured credit card limit will also be $300.

These cards let you show you’re creditworthy while minimizing risk for the lender, since you’re only borrowing against your own deposit. Once you have the card, make payments on time to build your score.

2. Become an Authorized User

Family members or close friends can help you build credit by becoming an authorized user on their credit card.

You don’t need to qualify for the card since it’s in the other person’s name, but the activity on the card counts toward your card score. As long as you’re both responsible users, it’s a win-win.

3. Credit-Builder Loans

Consider a credit-builder loan from a bank or credit union as another way to build credit.

Unlike a traditional loan, you make payments into a locked savings account — and once you’ve made all the payments, you get the money back. It’s a low-risk way to establish a positive payment history and boost your credit score.

4. Reporting Rent and Utility Bill Payments

You can use free tools like Experian Boost to get credit for paying bills like utilities and streaming services. The service reports your payments to the credit bureaus, helping you build credit over time.

Other companies, like Rental Kharma, can report on-time rent payments to help raise your score or establish a credit profile, though they typically charge a monthly fee. 

5. Student Credit Cards

College students can apply for a student credit card to build credit.

Banks offer these cards to people with little or no credit history, so you might have an easier time qualifying for one. Since limits are lower and rates are often higher, make sure to pay off the balance as you use it. 

Long-Term Habits To Build Good Credit

After you’ve taken the first steps, these long-term habits can help you keep your credit moving in the right direction.

Consistent On-Time Payments

Set a reminder on your phone or designate a day each week to log in and make a payment toward your bill balances. Remember, your payment history is 35% of your credit score. 

Maintain Low Credit Utilization

Credit utilization is the amount you owe compared to your credit limit. Try to keep your balance below 30% of your limit — for example, stay under $300 if your limit is $1,000.

Lower utilization shows lenders you’re managing credit responsibly.

Diversify Your Credit Mix

Your credit mix is the type of credit you have, including credit cards, mortgages and loans. Lenders usually want to see a mix because it indicates that you’re a responsible borrower.

Diversifying credit can take time, though. It’s okay to start with one type of credit and slowly build. 

Keep Old Accounts Open

Use account history to your advantage. Keep older accounts open since account history is a factor that impacts your credit levels and score. Plus, opening too many new accounts at once can temporarily decrease your score. 

Regularly Monitor Your Credit Score

Check your credit score regularly. You can pull your credit report once a year for free at AnnualCreditReport.com. Take advantage of this and report any mistakes immediately.

Conclusion

It’s possible to build credit quickly with the right approach. Whether you’re starting from scratch or repairing past credit mistakes, focus on consistent on-time payments, low credit utilization and strategic credit-building tools.

Options like secured credit cards, credit-builder loans and becoming an authorized user can help speed up the process — all while keeping risk to a minimum.

Rudri Patel contributed to the reporting for this article.

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