How to Build Credit Quickly: A Step by Step Guide

Do you have a solid understanding of how your credit score works? If you’re like many Americans, you might not. Studies show that as many as four in ten Americans have no clue how their build credit quickly score is determined. 

Unfortunately, your credit score has a huge impact on your life. Because of that, you want to ensure that you understand how to build credit.

Today we’re going to explain the exact steps you can take to get a good credit score. Once you finish reading, you’ll have the knowledge you need to improve even the shakiest of scores. 

Read on to learn more. 

Know Your Credit Score

The first step in understanding your credit score is to know what it is. Too many people have no idea how high or low their score is, not realizing that it can make their life difficult in so many ways.

All major creditors offer a free report once a year. Make a point to take advantage of that so you can get to work repairing it, if necessary. 

Dispute Incorrect Information

Once you have your credit report in front of you, make sure to scrutinize it for errors. This is an essential step of the DIY credit repair process since credit reports often contain incorrect information. 

Ensure that all of your information checks out. If it doesn’t, call the company to refute the claim! 

Pay Your Bills on Time

Paying your bills on time can be challenging, particularly when finances are tight and you have other expenditures to worry about. However, pushing your bills off will inevitably lead to credit disaster.

Try your best to make all your bill payments on time to keep your score high. 

Also, Read: How to Calculate Down Payments

Report Your Rent and Utilities

Credit companies don’t factor payments towards rent and utilities into your credit score by default. However, most people make those payments on time, so reporting them to credit agencies can help you improve your score.

Use a third-party program to help you do that, and hopefully, boost your score!

Keep Your Credit Usage Down

It’s tempting to push your credit usage to the limit since you don’t have to worry about paying it back until later. But remember that credit is debt, and too much debt is something creditors don’t want to see.

Most financial experts recommend keeping your credit usage below 30%. Anything higher than that can start to have a negative impact on your score. 

Understand How to Build Credit

It’s hard to know what raises a credit score, and at times, it can seem like the whole system is designed against you. However, there are ways to go about building credit fast.

Use this guide to help you better understand how to build credit fast. 

Are you looking to learn more about how to get a good credit score? If you are, make sure to check out the rest of our site for more great content.