Posted on Wednesday, 25th August 2010 by Lucy Hales

It’s important to learn how to build credit history fast, because it is going to save you money. And on the long run, lots of money. When you build credit score fast and reach certain level, you see immediate results – better loan terms with less fees and lower interest rate. Paying extra $50 a month doesn’t seem much to many of you, but it amounts to $600 a year, enough to take vacation or buy a new set of tires and decent ones. So how can you achieve this? You can compare the process involved to build your credit history with the battle to lose weight. Do it too fast and it can cause more harm, so credit building takes time and there is no quick fix. One must manage his or her credit responsibly over time. The tips provided here are for someone who has a decent credit history without too many delinquencies and wants to raise credit score further. If you have real credit problems and want solve them fast, see quick credit fixes.

How to build credit history fast – payment history is vital
This is the most important factor when it comes to credit score, so here are several tips,
– pay your bills on time
– delinquent payments and collections ruin your credit score very fast
– if you have missed payments, get current and stay current
– the longer you pay your bills on time, the better your credit score
– paying off a collection account will not remove it from your credit report but helps score
– most delinquencies stay on report for 7 years, some for 10
– having trouble making payments, contact your creditors to make arrangements
All these tips will not work over night but still get your score higher rather fast – within 3 to 9 months, depending on where your credit history stands now.

How to build credit history fast – keep utilization rate low
– keep balances on credit cards and other revolving credit accounts under 30% from credit limits
– high outstanding debt affects credit score and credit rating
– try to pay off debt rather than moving it from one credit card to another
– pay down revolving debt if can pay it off
– owing the same amount but having fewer open accounts may lower your score
– keep paid-off or unused credit cards open to help raise your score fast
– open a few credit cards and don’t use them
– ask existing creditors to increase your credit limits
Opening too many credit cards can actually lower your credit score and fast. Read repair credit score quickly for the right type of loan.

Build credit history fast yet carefully especially if you are a newbie
– don’t open many new accounts too rapidly
– new accounts will lower your average account age
– it will have a larger effect on your credit score if you don’t have established credit history
– even if FICO algorithm won’t penalize you, potential creditor may not like it

Build credit history fast – looking for better terms
– do rate shopping for a given loan within a focused period of time
– get a copy of your credit report so potential lenders don’t pull it each time
Though FICO algorithm supposedly distinguishes between a search for a single loan and a search for many new credit lines, in part by the length of time over which hard inquiries occur, it still lowers your credit score.

How to build credit history fast – have a good mix of account types
– apply for and open new credit accounts only as needed
– having credit cards and installment loans will build your credit score
– closed account will show up on your credit report as CLOSED, and is often considered by the FICO

For more tips and techniques read the following posts as well as others
Improve credit score fast – how to boost your credit scores
Increase credit score 100 points
Raise credit score fast 50 points
Credit report scale, range and guide

Similar Posts:

Share

Tags: Build Credit, Build Credit History, Credit History, History
Posted in Free Credit Report News | No Comments »

Leave a Reply