How to Establish Credit Quickly

No matter who you are, it is important to have a good credit history. Whether you have always used cash in the past, or you are just starting out in life, a credit rating can mean the difference between getting a mortgage for a house, getting approved for a loan or even renting an apartment. When you need to establish credit quickly, there are a few steps that you can take.

Instructions

1

Open one credit card. It may be necessary to get a secured card if you do not yet have any history of making payments on time. It is important to limit yourself to one card when you are first trying to establish credit quickly. Too many credit cards can actually have a negative impact on your overall credit rating.

2

Make the payments on that card on time, every month. The key to establishing credit quickly is to make sure that you make your payments on time, every single month. If necessary, mail or pay your bill online at least one week before it is due.

3

Keep your balances low. Lenders and creditors look not only at your credit score, but also at your debt ratio. If you have a high balance on your card, this may indicate that you are a bigger risk. Keep your balances as low as possible and pay more than the minimum payment each month if necessary.

4

Wait three to six months. Even if you want to establish credit quickly, it is important to remember that it does take time for the credit bureaus to start receiving reports on your payment histories. In most cases it will take as little as three months, but that can stretch to six months with some lenders and credit card companies.

5

Keep making your payments on time and avoid high balances--lenders look at the long term picture when they are viewing your credit history. Otherwise, all of your work to establish credit quickly will have been in vain.