Your First Task

Building credit is not difficult to do, however, there are some conditions that need to be met to accomplish your goal of a high credit score. For starters, you must have open accounts in your name. We cannot do our job of building your credit if you do not have any credit. Make sure you have at least two open accounts or else you will want to open an account immediately to begin a history of credit. Below are a couple suggestions to help you get started.

Revolving Debt

Revolving debt, such as a credit card, is the best way to build credit fast. Lenders want to see that you are capable of managing credit cards by maintaining a low balance and paying your bills on time. A secured credit card is a great option for those who are not approved for an unsecured card. This requires you to provide a deposit to back the credit card limit, but once that is done you may start building credit like an unsecured credit card.

Authorized User

It is important to note that an authorized user account is not a replacement for having an account in your own name. However, if you have a friend or relative with great credit who is willing to add you as an authorized user then you may want to take advantage of the opportunity. Being an authorized user means your name is added but you have no obligation to the account. The benefit is you will inherit the credit history on the account as if your name was attached to it from the beginning. This is a way to achieve an instant credit history within 60 days of being added as an authorized user.