4 Effective Tips That Will Help You Build Credit Fast
Updated: Feb 14
Building credit is incredibly important as a good credit score gives you access to more favorable loans. This is why it’s not at all surprising why people are always on the lookout for ways that help them build credit. To help you out with this, we thought it would be useful to put together a brief article discussing ways that allow you to improve your credit score. If this is something that you’re interested in learning more about, read on as we list down four effective tips that will help you build credit quickly.
Become an Authorized User
If you have a spouse, parent, or partner with excellent credit, ask if they'll apply for you to be an authorized user on their credit card account. As an authorized user, you'll get a share of their credit history if the primary cardholders make their payments on time. You should also make sure that the credit card company will report your authorized user status to the credit bureaus so that you can get credit.
Utilize a Secured Credit Card
A traditional credit card requires no collateral to open and might have a higher credit limit, but it may be harder to qualify if you have poor or no credit. On the other hand, a secured credit card requires collateral — your deposit — but you might have an easier time qualifying for it with poor or no credit. You can use a secured credit card to help you build credit. It works the same way as a regular credit card, which means that making payments on time and not going over your limit will reflect positively on your credit score.
Apply for a Credit-Builder Loan
If you need to establish your credit, secured credit-builder loans and secured loans are similar and are a great way to do this. These types of loans are offered by several traditional banks and credit unions and online lenders, and they’re generally quite small: sometimes less than $1,000. With this type of loan, you’ll make payments that get deposited into a dedicated savings account. After the repayment period is over, the money from both your account and the bank will be returned to you, minus any additional fees you owe.
Look for a Creditworthy Cosigner
If getting a secured credit card or loan does not seem feasible for you, consider applying for a credit card with a creditworthy cosigner. A cosigner can be a parent, relative, or trusted friend who will apply for the loan with you and share responsibility for the loan if you are unable to repay it. As long as you make your payments on time, the cosigner will not be held responsible for the payment. Having a cosigner will put lending companies at ease and may allow you to get approved for loans even with bad credit.
We hope this article proves to be useful when it comes to helping you improve your credit. As you can see, there are a slew of different ways to help you build credit. We suggest applying all of these tips in order to find the best way to build credit fast. Feel free to look back on this article if you need a quick refresher on how to improve your credit score.
If you’re looking for personal loans that will help you improve your credit, then you’ve come to the right place. Here at Opelika Finance, we strive to help you with your loans with clear and straightforward repayment plans in Opelika, AL. We will make the borrowing process quicker and simpler. Get in touch with us to create your personal loan now!