4 Rules for Building Credit Fast But Responsibly

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Building Credit Fast

Building Credit FastGood credit has lots of benefits. It can help you get the mortgage you need to buy your dream home, or save you hundreds of dollars on insurance premiums. On the flip side, if you have poor credit you’ll be missing out on these great benefits, and likely waste a lot money in the process.

So what happens when you want to change your situation and need to build credit fast? What can you do? The first step is to think about building credit as a long-term goal, and not something that will change overnight.

Crash dieting doesn’t work (at least not as a long-term solution) and neither do short-term financial fixes. However, there are a few ways for you to build credit fast and create smarter spending habits. If you’re striving to build credit quickly, check out these four simple rules:

  1. Check For Errors 

One of the fastest ways to increase your credit score is to check for errors on your credit report. Mistakes happen but they won’t get sorted out unless you contact one of the three major credit bureaus to get it resolved.

Maybe an account is showing on your credit report that doesn’t belong to you, or someone else’s information is getting mixed up with yours. Resolving the problem shouldn’t take a lot of time, and could help boost your credit very quickly.

  1. Negotiate With Creditors

Have you made a late payment recently? Do you have an account that hasn’t been paid in a while? These outstanding debts can wreak havoc on your credit report. Simply call up the financial company and ask for them to work with you.

Maybe they can erase a late payment you just made, or possibly settle on an amount that will cover the entire balance on your account. You’ll want to get this in writing of course, but don’t let unpaid debts remain on your credit report. Deal with them as soon as possible and see if you can negotiate a better solution.

  1. Increase Your Credit Limit

While you’re calling the credit card company, ask them if you qualify to have the credit limits on your accounts raised. This could help decrease the overall amount of credit used and increase your credit score.

The proper amount of credit utilization is 30% and makes up a good portion of how your overall credit score is calculated. So raising the credit limit on your accounts will reduce the amount of credit used, thus making your account less of a risk to creditors.

  1. Become an Authorized User

If you’re unable to build credit fast by yourself, consider asking a friend or family member to help by adding you as an authorized user on their account. You don’t want to put their financial history in jeopardy so offer them a contract in writing, and come to an agreement on terms.

It’s kind of like having an accountability partner while you’re losing weight. They can help you stay on track, and you’ll answer to them on a regular basis. Do your part to build credit responsibility and work with someone who can influence you in better spending habits.

Your credit history won’t change itself, so get out there and make it happen. Use these rules to start building credit fast so you can gain financial freedom in the future.

For more tips on building credit, Quizzle is here for you with free credit tools to help you gain a complete understanding of your credit history. Get your free credit report and score and get started today!