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If you’re wondering how to build credit fast, two great options are getting a secured credit card or becoming an authorized user on an already-established credit card.
But there are also several other strategies that could help you both establish and maintain credit.
Here are 10 ways to build credit fast:
- Become an authorized user
- Get a secured credit card
- Apply for a credit-builder loan or secured loan
- Find a creditworthy cosigner
- Get credit for paying your rent
- Monitor and dispute errors on your credit report
- Ask to raise your credit limit
- Pay down existing debt
- Pay your bills on time
- Consider a debt consolidation loan
1. Become an authorized user
- Best if: You have bad or no credit and have a creditworthy friend or family member willing to add you to their account.
- Effectiveness: High
- Effort: Low
If you have a spouse, parent, partner, or trusted friend who has excellent credit, consider asking them if you can become an authorized user on their credit card account. As an authorized user, you’ll get credit for the account but aren’t responsible for the charges.
It’s also a good idea to double-check that the credit card company will report your authorized user status to the credit bureaus — otherwise, you won’t get credit. Most major credit card companies do, but make sure to double-check just in case.
For example, a parent might add a teenager to their card as an authorized user with the understanding that the card can be used only for emergencies and that they must pay back the charges.
By coming to an agreement beforehand, you can avoid straining your relationship with the primary cardholder.
2. Get a secured credit card
- Best if: You have poor or no credit and don’t have the option of being added as an authorized user on someone else’s credit card.
- Effectiveness: High
- Effort: Medium
Unlike a traditional credit card that requires no collateral, you’ll need to provide a deposit to open a secured credit card — this deposit amount will be your credit limit. Because there’s less risk to the lender, you might have an easier time qualifying for a secured credit card with poor or no credit compared to an unsecured credit card.
You can use a secured card in the same way as you would a traditional credit card: making purchases against your credit limit and paying them off. If you make your payments on time, you can build a positive payment history and improve your credit.
Additionally, some credit card companies will let you switch your secured card to a regular credit card and get your deposit back after making on-time payments for a certain period of time.
This also means you could be stuck with hefty interest charges if you can’t repay your balance in time.
Learn More: Getting a Loan with No Credit: 5 Loans for New Borrowers
3. Apply for a credit-builder loan or secured loan
- Best if: You don’t have good credit or are starting over completely after a financial crisis like bankruptcy.
- Effectiveness: High
- Effort: Medium
Credit-builder loans and secured loans can be used to help you establish by building a positive payment history — similar to a secured credit card.
These loans are offered by several traditional banks and credit unions as well as online lenders and are generally quite small — sometimes $1,000 or less.
Here’s how they work:
- Credit-builder loans: With this type of loan, you’ll make payments that are deposited into a dedicated savings account. Once the repayment period is over, you’ll get your money back minus any interest or fees.
- Secured personal loans: This kind of personal loan requires you to provide collateral that will secure the loan, such as jewelry, machinery, or another item of value. The money you borrow can be used for almost any purpose, but if you’re taking out the loan to build credit, it might be a good idea to stash the money away instead and simply repay the loan over time. This way you won’t run the risk of losing your collateral if you can’t make payments.
4. Find a creditworthy cosigner
- Best if: You have a trusted friend or family member with good to excellent credit who is willing to cosign a loan with you.
- Effectiveness: High
- Effort: Medium
If getting a secured credit card or loan doesn’t seem right for you, another option to consider is applying for a credit card or loan with a cosigner.
A cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to apply for and share responsibility for the loan with you.
Having a creditworthy cosigner could improve your chances of getting approved for a loan if you have poor or no credit. Even if you don’t need a cosigner to qualify, having one could help you get a better interest rate than you’d get on your own.
This means they’ll be on the hook if you fail to make your payments — this will also damage their credit.
Check Out: How to Consolidate Bills Into One Payment
5. Get credit for paying your rent
- Best if: You don’t have many bills or loans that are being reported on your credit history and don’t mind paying a small fee.
- Effectiveness: Depends on your rent payment history
- Effort: Medium
Rent payments aren’t typically included in your credit report, which means they aren’t factored into your credit score. But there are several services that could help you get credit for these payments, such as Experian RentBureau, Rental Kharma, or RentTrack.
By having your rent payments reported to the credit bureaus, you could improve your payment history and potentially boost your credit score.
Additionally, your landlord must verify your rent payments.
6. Monitor and dispute errors on your credit report
- Best if: You have multiple loans or credit lines to keep track of.
- Effectiveness: High
- Effort: High
It’s a good idea to regularly review your credit reports from each of the three credit bureaus — Experian, Equifax, and TransUnion. This way, you can catch errors that might be damaging your credit score.
You’re entitled to a copy of your credit reports from each of the credit bureaus once a year — you can use a site like AnnualCreditReport.com to easily access your reports.
If you check your credit reports and find any errors, be sure to dispute them with the appropriate credit bureaus to potentially boost your credit score.
When disputing a credit report error, be prepared to provide documentation to help the credit bureau investigate your claim — such as a billing statement, letter from the creditor or IRS, or a canceled check or money order proving payment.
Check Out: Personal Loans With 550 Credit Score: Can I Get One?
7. Ask to raise your credit limit
- Best if: You have a long history with your credit card issuer.
- Effectiveness: High
- Effort: Low to medium
One of the major factors of your credit score is your credit utilization ratio, which is the amount you owe on revolving credit lines (such as credit cards) compared to your total credit limits. One way to possibly lower your credit utilization is by asking your card issuer to increase your credit limit.
In general, card issuers are friendlier to requests from long-time customers who have good credit and pay their bills on time. They might also accept the request if you can show an improvement in your credit.
Keep in mind that the card issuer might perform a credit check to see if you qualify for the increase.
8. Pay down existing debt
- Best if: You have multiple debts and can afford to make extra payments.
- Effectiveness: High
- Effort: Depends on amount of debt
Another possible way to build your credit is by paying down your existing debt. For example, if you reduce your balances on credit cards or lines of credit, you could improve your credit utilization and boost your credit score.
This might also help you lower your debt-to-income (DTI) ratio — the amount you owe in monthly debt payments compared to your income. While your DTI ratio doesn’t impact your credit score, having a low ratio could make it easier to access credit in the future.
- Debt avalanche method: With this method, you’ll focus on paying off your debt with the highest interest rate first. This option could be a good way to save money on interest charges — however, it could take a while to see your results.
- Debt snowball method: If you pick this method, you’ll work to repay the smallest loan first. This could be a good choice if you’re motivated by small wins, though you’ll likely save less on interest charges compared to the debt avalanche.
Check Out: How Debt Consolidation Loans Can Help Your Credit Score
9. Pay your bills on time
- Best if: You’re a credit newbie or credit veteran.
- Effectiveness: High
- Effort: Low to Medium
Your payment history is the largest component of your credit score, which is why it’s critical to make on-time payments in order to see an improvement in your score.
One way to avoid missing payments is setting up automatic payments, either through the company or through your bank. Some companies and lenders even offer a discount to customers who opt for automatic payments.
10. Consider a debt consolidation loan
- Best if: You have multiple debts with high interest rates.
- Effectiveness: Depends on how you manage your loan
- Effort: Medium
Debt consolidation is the process of taking out a personal loan to pay off multiple types of debt, leaving you with just one loan and payment to manage. Depending on your credit, you might also qualify for a lower interest rate than what you’re currently paying.
Taking out a debt consolidation loan might also help your credit in the long run — for example, if you make on-time payments or are able to diversify your credit mix with a personal loan.
If you’re struggling to get approved, consider applying with a cosigner to improve your chances. Not all lenders allow cosigners on personal loans, but some do. Having a cosigner might also get you a lower interest rate than you’d get on your own.
If you’re thinking about getting a debt consolidation loan, here are some pros and cons to consider first:
| Pros | Cons |
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Learn More: 3 Steps to Get a Debt Consolidation Loan for Bad Credit
Lenders that offer debt consolidation loans
If you decide to take out a personal loan for debt consolidation, be sure to consider as many lenders as possible to find the right loan for your needs.
Here are Credible’s partner lenders that offer debt consolidation loans to borrowers with bad credit:
| Lender | Fixed rates | Loan amounts | Min. credit score | Loan terms (years) |
|---|---|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.95% - 35.99% APR | $2,000 to $35,000** | 550 | 2, 3, 4, 5* |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 35.99% APR | $5,000 to $35,000 | 600 | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.99% - 24.99% APR | $2,500 to $35,000 | 660 | 3, 4, 5, 6, 7 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 29.99% APR | $5,000 to $40,000 | 600 | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.3% - 36.0% APR | $1,000 to $40,000 | 600 | 3, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 35.99% APR | $2,000 to $36,500 | 580 | 2, 3, 4, 5, 6 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.24% - 19.99% APR | $5,000 to $100,000 | 660 | 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans) |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.99% - 24.99% APR1 | $3,500 to $40,0002 | 660 (TransUnion FICO®️ Score 9) | 3, 4, 5, 6, 7 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 18.0% - 35.99% APR | $1,500 to $20,000 | None | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.74% - 17.99% APR | $600 to $50,000 (depending on loan term) | 660 | 1, 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.99% - 35.99% APR | $2,000 to $50,000 | 640 | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.69% - 35.93% APR7 | $1,000 to $50,000 | 560 | 3, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.46% - 35.97% APR | $1,000 to $50,000 | 560 | 2, 3, 5, 6 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 5.4% - 35.99% APR4 | $1,000 to $50,0005 | 580 | 3 to 5 years4 |
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Frequently asked questions
Here are the answers to a few commonly asked questions about building credit:
How are credit scores calculated?
Your credit score is calculated based on several factors from your credit report. Here are the components included in your score as well as what percentage of your score they make up:
- Payment history: 35%
- Credit utilization: 30%
- Length of credit history: 15%
- Credit mix: 10%
- New credit: 10%
How can I build my credit if I have no credit?
A couple of ways to begin establishing a credit history include:
- Becoming an authorized user: If someone with good credit adds you to their credit card account, you can benefit from their good credit habits without even needing to use the card.
- Taking out a credit-builder loan: These loans are generally geared toward borrowers with poor or no credit and can be a good option for building a positive payment history. Plus, after you pay off the loan, you’ll get your payments back minus any interest or fees.
How can I raise my credit score in 30 days?
Whether you can raise your credit score in 30 days will mainly depend on where you’re starting.
- If you have no credit, you might be able to establish a credit history and score by becoming an authorized user on a credit card account or by making payments on a loan, such as a credit-builder loan.
- If you have bad credit, it might take longer to repair it depending on what damaged your score in the first place. For example, rebuilding your credit after bankruptcy will likely be a slower process compared to if you missed a single payment.
How can I increase by credit score by 100 points in one month?
While there’s no guarantee that you can increase your credit score by 100 points in just one month, some strategies could lead to higher jumps than others.
For example, paying down a significant portion of existing debt or improving your payment history could both have a major impact on your score — though it will likely happen over time.
What is the fastest way to build my credit?
The fastest way to build credit will vary depending on what’s already on your credit report — for example:
- If you’re building credit from scratch, becoming an authorized user on someone’s card with excellent credit or taking out a credit-builder loan could be a fast way to establish a positive payment history and good credit score.
- If you already have a few credit accounts, paying off your balances could be a quick way to improve your score.
- If you have several negative records on your report, focusing on establishing healthy credit habits — such as paying all of your bills on time — as well as disputing any errors could be the fastest way to rebuild your credit.
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