How to Build Credit Fast: 9 Strategies to Try
You could elevate your credit score with tips such as making on-time payments, paying credit card bills more than once a month, becoming an authorized user and fixing credit report errors.
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Want to raise your credit fast and build a good score? Look for things such as a missed payment, a high credit card balance or a mistake on your credit report for a quick boost. If the problem is a thin credit file, there are ways to build your credit at a pace that feels right for you.
Get free copies of your credit reports to diagnose what might be dragging your credit down. It's important to identify what's affecting your score so that you can pick the right set of strategies for you. We've listed nine options below.
1. Pay bills on time
No strategy to improve your credit will be effective if you pay bills late. Late payments can stay on your credit reports for seven years.
If you miss a payment by 30 days or more, pay the outstanding balance immediately. Next, reach out to the creditor by phone or online chat and ask if they will consider no longer reporting the missed payment to the credit bureaus. You're more likely to have success with this approach if this is a one-time occurrence and you have a record of on-time payments.
Even if the creditor doesn't agree to your request, it’s still important to bring your account up to date as soon as possible. Each month that an account is marked delinquent hurts your score.
SCORE IMPACT: Highly influential. Your payment history is the largest scoring factor in both FICO and VantageScore credit scoring systems.
TIME COMMITMENT: Low. Prevent missed payments by setting up account reminders and considering automatic payments to cover at least the minimum.
HOW FAST IT COULD WORK: This varies, depending on how many payments you've missed and how recently. It also matters how late a payment was (30, 60, 90 or more days past due). Fortunately, the impact of delinquent payments fades over time, and adding more positive credit accounts can help to speed that up.
2. Pay credit card balances strategically
The portion of your credit limits you're using at any given time is called your credit utilization. A good guideline: Use less than 30% of your limit on any card, but lower is better. The people with the highest scores tend to have credit utilization in the single digits.
The amount of credit you're using is part of the data used to calculate your credit score. You can either pay down the balance before the billing cycle ends or, if your income is less reliable, make smaller payments throughout the month to keep your balance low. You might also use seasonal work income, tax refunds or gifts to pay down your balance.
To find out when your card issuer reports to the credit bureaus, check your statement for information that indicates a reporting date, which is likely around the end of your billing cycle. You can also call your card issuer’s customer service line to ask for a specific date or time frame and find out which bureaus they report to.
SCORE IMPACT: Highly influential. Your credit utilization is usually the second-biggest factor in your credit score; the biggest credit scoring factor is paying on time.
TIME COMMITMENT: Low to medium. Set calendar reminders to make payments or add alerts to your credit card accounts. Financial management strategies that support different organizational styles, such as setting up all payments to come out of one account or putting all of your bills on a single credit card, can help you streamline the payment process and keep track of balances.
HOW FAST IT COULD WORK: Fast. As soon as your credit card reports a lower balance to the credit bureaus, that lower utilization will be used in calculating your score.
3. Ask for higher credit limits
When your credit limit increases while your balance stays the same, it immediately lowers your overall credit utilization, which can improve your credit. If your financial situation has improved, such as an increase in income or more years of positive credit history, you're likely in a good position to request a higher limit.
However, before asking for a credit limit increase, plan how you'll keep your spending habits steady and avoid using the additional credit. If those higher limits are a temptation, this might not be the best strategy for you.
SCORE IMPACT: Highly influential, because utilization is a large factor in credit scores.
TIME COMMITMENT: Low. Contact your credit card issuer to ask about getting a higher limit. See if it's possible to avoid a “hard” credit inquiry, which can temporarily drop your score a few points.
HOW FAST IT COULD WORK: Fast. Once the higher limit is reported to credit bureaus, it will lower your overall credit utilization, provided you don't spend the additional available credit.
4. Become an authorized user
If someone you trust, such as a relative or mentor, has a credit card account with a high credit limit and a good history of on-time payments, you might consider asking to be added as an authorized user. The account holder doesn’t have to let you use the card — or even give you the account number — for your credit to improve.
Make sure the account reports to all three major credit bureaus (Equifax, Experian and TransUnion) to get the best effect — most credit cards do.
SCORE IMPACT: Potentially high, especially if you are new to credit and have a thin credit file. The effect will be smaller for those with established credit who are trying to offset missteps or lower credit utilization.
TIME COMMITMENT: Low to medium. You'll need discuss with the account holder whether you'll have access to the card and account or if you'll just be listed as an authorized user.
HOW FAST IT COULD WORK: Fast. As soon as you're added and the lender reports the updated information to the bureaus, the account can benefit your profile.
5. Dispute credit report errors
A mistake on one of your credit reports could be pulling down your score. Disputing errors on your credit report can help you quickly improve your credit.
You're entitled to free weekly reports from each of the three major credit bureaus. Use AnnualCreditReport.com to request them and then check for mistakes, such as payments marked late when you paid on time or someone else's credit activity mixed with yours. Also look for negative information, such as a bankruptcy, account in collections, foreclosures or other derogatory marks, that are too old to be listed anymore — that's typically seven years.
SCORE IMPACT: Varies, but could be high if a creditor is reporting that you missed a payment when you didn't.
TIME COMMITMENT: Medium to high. It takes some time to request and read your free credit reports, dispute errors and track the follow-up. But the process is worthwhile, especially if you're trying to build your credit ahead of a milestone such as applying for a large loan. If you're planning to apply for a mortgage, get disputes done with plenty of time to spare.
HOW FAST IT COULD WORK: Varies. The credit bureaus have 30 to 45 days to investigate and respond. Some companies offer to dispute errors and quickly improve your credit, but proceed with caution.
6. Deal with collections accounts
Paying off a collections account removes the threat that you will be sued over the debt, and you may be able to persuade the collection agency to stop reporting the debt once you pay it. You can also have collections accounts removed from your credit reports if they aren't accurate or if they've aged off your credit report but are still listed.
SCORE IMPACT: Varies. An account in collections is a serious negative mark on your credit report, so if the collector agrees to stop reporting the account it could help a great deal.
If the collector keeps reporting the account, the effect depends on the scoring model used to create your score. The FICO 8 model, which is most widely used for credit decisions, still takes paid collections into account. However, more recent FICO models and VantageScores ignore paid-off collections.
TIME COMMITMENT: Medium. You'll need to request and read your credit reports, then make a plan to handle collections accounts that are listed.
HOW FAST IT COULD WORK: Moderately quickly. For credit scores that do not factor in paid collections, like VantageScore and newer FICO models, your score can improve as soon as the paid-off status is reported to the credit bureaus. In other cases, such as disputing a collection account or asking for a goodwill deletion, the process could take a few months.
7. Use a secured credit card
Another way to build or rebuild your credit is with a secured credit card. This type of card is backed by a cash deposit that serves as collateral. You pay the deposit upfront and it acts as your credit limit. You use the secured card like a regular credit card, and your on-time payments help build your credit.
SCORE IMPACT: Varies. This is most likely to help someone new to credit with accounts or someone with dented credit wanting a way to add more positive credit history and dilute past missteps. However, be sure to pay your bill each month. A missed payment could result in a late fee or force the issuer to use your deposit to cover the debt.
TIME COMMITMENT: Medium. Look for a secured card that reports your credit activity to all three major credit bureaus. You may also consider looking into alternative credit cards that don't require a security deposit.
HOW FAST IT COULD WORK: Several months. The goal here is not just having another card, although that can help your score a bit by improving your depth of credit. Rather, your aim is to build a record of keeping balances low and paying on time.
» SEE OUR PICKS: Best secured credit cards
8. Get credit for rent and utility payments
Rent-reporting services can add your on-time rent payments to your credit reports. Rent payments are not considered by every scoring model — VantageScores include them but FICO 8 does not, for example. Even so, if a would-be creditor looks at your reports, rent records will be there, and a long record of consistent payments can only help.
Experian Boost may also help. You link bank accounts to the free Boost service, which then scans for payments to streaming services, phone and utility bills as well as eligible rent payments. You choose which payments you want added to your Experian credit report.
SCORE IMPACT: Varies.
TIME COMMITMENT: Low. After initial setup, no additional time is needed.
HOW FAST IT COULD WORK: Varies. Boost works instantly, but the rent-reporting aspect of it, as with rent-reporting services, will vary based on a consumer's history. For example, some services offer an instant "lookback" of the past two years of payments, but without that, it could take some months to build a record of on-time payments.
9. Add to your credit mix
An additional credit account in good standing may help your credit, particularly if it is a type of credit you don't already have.
If a secured card isn't feasible due to the deposit requirement, a credit-builder loan can be a low-cost option. Check that the loan you're considering adding reports to all three credit bureaus (Equifax, Experian and TransUnion). If you're unsure, you can ask the card issuer directly or check the website.
If you have only loans or have few credit cards, a new credit card may help. In addition to improving credit mix, a new card can reduce your overall credit utilization by providing more available credit.
SCORE IMPACT: Varies. Opening a loan account is likeliest to help someone with only credit cards. And there's more potential gain for people with few accounts or short credit histories.
TIME COMMITMENT: Medium. Consider whether the time spent researching providers and applying is worth the potential lift to your score. Weigh what you'd pay in interest and fees, too, if you're getting a loan or card strictly to improve your credit.
HOW FAST IT COULD WORK: Fast. As soon as the new account's activity is reported to the credit bureaus, it can start to benefit you.
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