September 27, 2023
    Improving your credit score will ensure you have better opportunities in life, but where do you start? Here are 5 ways to build credit fast!

    5 Ways to Build Credit Fast

    Did you know that the average American credit score is ranked as good at 711 points?

    Not only is your credit score a representation of how healthy your finances are, but this number is essential for things like moving, buying a car, and other major life events. Without good credit, you’ll have a hard time succeeding.

    Whether you’re about to start your credit journey or you’d like to resuscitate poor credit, the good news is that there are plenty of ways to build credit fast. Keep reading to learn 5 tips on how to boost your credit score.

    1. Ask for a Credit Increase

    One of the easiest ways you can improve credit is to call your credit card companies and ask for an increase on your limits. This will work wonders for your credit reports because you can get a better credit utilization ratio.

    One mistake you’ll want to avoid is opening up new credit accounts since this can harm your credit score due to longevity.

    2. Work on Paying Off Your Debt

    Another powerful thing you can do to improve your credit is prioritizing paying off your debt. While this is easier said than done, creating a budget that allows you to pay more than your minimum amounts each month can save you thousands in the long run.

    With your credit report updated, you’ll be amazed by how many points you can earn after you’ve tackled some debt.

    3. Sign Up for Automatic Payments

    In addition to getting your free credit report each month, many credit card providers allow people to set up automatic payments so they never miss out. Being punctual will keep your score from plummeting.

    The best part is that you have the choice to pay the full balance if you’d like. This could pressure you to stop spending more than what you have.

    4. Become an Authorized User on Someone Else’s Account

    If you know someone who has great credit and you have a deep, trusting relationship, then you should consider asking them if they can add you as an authorized user on their account.

    Their good habits will reflect well on your score without you needing to lift a finger.

    5. Don’t Close Old Credit Card Accounts

    If you hate clutter, then you might be tempted to close old credit accounts.

    Even if you no longer use a specific credit card, you should keep the account open since a longer credit history makes you a reliable borrower.

    Are You Ready to Try These Top Ways to Build Credit Fast?

    Now that you’ve learned several different ways to build credit fast, you can get ready to set yourself up for financial success. Once you increase your credit score, you’ll become an unstoppable force in life.

    Learning how to manage your money responsibly is no easy feat for many people. This is why it’s helpful to keep up with the latest finance tips that can make your money work harder for you instead of the other way around. Browse our other articles so you can gain access to more expert guides.

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