How to Build Credit Faster

There are ways to build credit from scratch. Since some credit card companies and lenders are leery to extend credit to first-timers, building a credit score fast requires knowing where to look. Whether you're a teenager starting out or you're recovering from a bankruptcy, it's possible to obtain a good rating in a short amount of time.

Instructions

1

Check your credit report. Your personal credit report reveals your past and present history. Order a free annual copy from www.annualcreditreport.com and inspect it for mistakes such as unfamiliar negative accounts, which can reduce your score. Dispute errors by writing to the credit bureaus.

2

Obtain a bank checking or savings account. Visit a bank branch and open an account. Inquire about minimum deposit requirements.

3

Begin saving for a security deposit. Set aside between $300 and $500 to be used toward a security deposit on a credit card. Plan to spend additional money on other fees in your secured account such as a one-time setup fee and an annual fee. Fees vary by lender.

4

Complete an application for a secured credit card. Local and national banks offer secured cards to those with no credit history or bad credit. Submit your application along with the appropriate amount for the deposit.

5

Attempt to get an unsecured credit card. College students can qualify for a credit card with no credit history. Check out announcement or bulletin boards on campus and pick up an application for a student credit card, which generally requires a bank account and employment.

6

Take advantage of retail credit cards. Major credit cards are tricky to obtain with little credit history. Complete an application for a retail charge account to begin building your credit history.