Build Credit Fast with these Five Quick Tricks

Having no credit or a low credit score can trap one in a vicious cycle. It is difficult to get any loans or line of credit without a good credit score. But it is not possible to build credit if you can’t get any credit or loans. So, is there a solution to this conundrum? Yes, it is possible to build credit fast and get out of the trap of no credit.

Here are five ways to build credit fast.

Check and analyze your credit report

The first step to build credit is to check your credit reports for any inaccurate information. Often times, incorrect or outdated information mentioned in credit reports can lower your credit score. Such erroneous reporting happens quite frequently. So, you cannot simply ignore it. When your credit is low, every point counts.

If you don’t have the time or the expertise to analyze your credit reports, you can hire credit repair experts for the job. Once you have identified any errors in your credit reports, you need to dispute them. You can do so by requesting the credit bureaus to do the same. Credit bureaus may not delete erroneous information from your credit reports at once. But with persistence on your part along with sufficient proof, you will be able to do so.

Buy tradelines

One surefire way to build credit fast is to use tradelines. In fact, using tradelines can be the quickest way to build credit. Once you have dealt with the errors on your credit report, you can focus on building your credit. You don’t need to wait for the deletions on the report to occur. You can begin to take the necessary steps to raise your credit score while dealing with the credit bureaus.

A tradeline refers to any account mentioned on your credit reports such as loans and credit cards. If you become an authorized user on someone else’s credit card, you benefit from the good credit accumulated on it. The points from the card will be used to calculate your credit score too. But it is not wise to become an authorized user on a relative’s or friend’s credit card. If they are not responsible with their credit card use, it will reflect on your credit report too. It will then further damage your credit.

For this reason, it is more prudent to buy tradelines from credible credit repair companies. You can buy new tradelines as per your requirements. Credit and financial experts working at these companies can guide you about the process and the right number of tradelines to buy.

You don’t need to (and you can’t) use these credit cards. These cards come loaded with a lengthy and credible credit history. So, the same will begin to reflect on your credit reports in no time.

Pay credit card bills on time

You still need to pay your existing credit card bills on time. Using a tradeline is the quickest way to build credit. But you will still need to take other measures.

If you have any outstanding bill on your existing credit card/s, you need to start paying it off as soon as possible. If you can’t afford to pay the entire debt amount then try to pay as much as you can every month.

Use your old credit cards

If you have any old credit cards, you need to continue using them to build credit fast. You may assume that closing credit cards can help you. But credit bureaus consider lengthy credit history when calculating credit scores. Your old credit cards can help you with it.

Use credit cards sparingly

You need to be mindful about using your credit cards; at least till the time, your credit score has improved considerably. Even then you will need to judiciously use your credit cards in the future.

The ratio of your credit balance and the credit limit (credit utilization) must be less than 30% for a good credit score. Credit utilization is a big factor, which determines a person’s credit score.

Pin It on Pinterest