Fast Ways to Build Credit

Many items are bought on credit today such as vacations, mortgages and other minor expenses. Building credit provides a history to show that you are responsible and reliable. It can influence if you get approved for a mortgage, a car loan and even a rental apartment. Learn how to build credit fast and you will open doors to opportunities not previously available to you.

Secured Credit Card

Sign up for a secured credit card. When you apply for a secured card, you make a deposit that provides a credit line for the amount of your deposit. The deposited amount establishes your credit limit for the next 12 to 18 months. A secured credit card issuer will not be concerned that you don't have a credit history because he has your deposit as a guarantee that he will be paid.

Subprime Credit Card

Consider a subprime card. A subprime card charges a higher interest rate to compensate for the potential risk of not getting paid should the cardholder default on payments. Subprime card companies are more likely to provide their card to someone with little or no credit line. If you sign up for a subprime card, make sure you pay the full amount due every month so that you don't pay the high interest charges.

Store Cards

Sign up for a local retailer's credit card. Retailers have less stringent credit terms than national credit card companies so it is more likely you will get an approved credit line from them.

Add On

Ask a relative with good credit history if she will add you as an additional signer on one of her credit cards. You get the benefit of her good credit history in building your credit.

Bill Management

Always pay your bill on time. On-time payments will make it easier for you to build additional credit. Keep your balances low because the ratio of available credit to balances is considered when you want more credit.

Balance Transfers

If you have a credit card balance and don't have the money to pay it down right away, transfer the balance to your spouse's card. This builds up your available credit. When your available credit grows, you can pay back the money you owe.

Annual Credit Review

Order a credit report showing your credit score and payment history once a year so you can monitor how quickly and effectively you are building credit.