5 Quick ways to Build your Credit Score
Open a Credit Card
Opening a credit card is one of the fastest ways to start building credit. If you're new to credit or have bad credit, consider starting with a secured credit card, which requires a cash deposit and functions like a regular card. Make small purchases and pay off the balance in full each month to establish a positive payment history without going into debt.
Make on time Payments
Your payment history makes up the largest portion of your credit score. Whether it’s a credit card, student loan, or phone bill, paying on time consistently shows lenders you're reliable. Even one missed payment can negatively impact your score, so set up reminders or autopay if needed.
Keep Credit Utilization Low
Credit utilization is the amount of credit you use compared to your total credit limit. Try to keep this ratio below 30%. For example, if you have a $1,000 limit, try not to carry a balance higher than $300. A low credit card utilization rate lets lenders know that you manage your credit responsibly.
Have Different Credit Types
Having different types of credit—such as a credit card, auto loan, or student loan—can strengthen your credit profile. Lenders like to see that you can manage multiple forms of credit responsibly. However, only take on debt that you can afford and need—never borrow just to build credit.
Become an Authorized User
If you have a trusted family member or friend with good credit, ask if they’d be willing to add you as an authorized user on their credit card. Their positive payment history and low balance can help boost your credit—just make sure the card issuer reports authorized user activity to the credit bureaus.
