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You usually need some form of established credit history to apply for a credit card, get a personal loan, or even an auto loan. And while it takes about six months to build an initial credit history, it takes even longer to build a good one. A strong credit history is needed to help you obtain lower interest rates, give you the ability to borrow more, and get you higher credit limits. So if you are wondering how to build credit fast to qualify for a personal loan for good credit, here is what you need to know.
Highlights/ Key Takeaways
- Your credit score is calculated using five main factors: your payment history, how much you owe, the length of your credit history, your credit mix, and your new credit.
- You can quickly boost your score by leveraging credit cards and loans and strategically making payments.
- Maintaining good habits is vital to ensure the increase in your score is not temporary.
- Other common tips for building credit fast are to become an authorized user on someone else’s account, get a credit-builder loan, or take out a secured credit card.
10 Fastest Ways to Build Your Credit core
If you want to build your credit score fast, there are some strategies that you can take. However, remember that while you might follow some of these suggestions, the most important thing you can do to build good credit and work towards excellent credit is to pay your bills on time and keep credit card utilization under 30%.