Frequently Asked Questions(FAQ)

How does good credit affect my ability to get loans, credit cards, and rent an apartment?

The better your credit, the more access you will have to lower interest rates, higher borrowing amounts, and more borrowing flexibility. Using rent as an example, while a landlord won’t exclusively use your credit score to determine if they will rent you an apartment, it is an important factor. The higher your score, the more confidence you will give the landlord that you can pay them monthly rent. And those with a good credit score of 670 or higher typically have good payment histories.

What is the fastest way to build credit if you have no credit?

Three tried-and-true, highly effective ways to build credit fast if you do not yet have established credit are as follows:

  • Getting added as an authorized user to someone else’s credit card
  • Taking out a credit builder loan
  • Getting a secured credit card 
Will I get approved for a credit card if I have no credit?

Getting approved for a traditional credit card is possible if you have no credit. However, these cards will likely come with high-interest rates and low borrowing limits. To better your chances of approval for a traditional credit card, it is often best to start with a secured credit card as you will likely be eligible to upgrade in 12 to 18 months or less.

Can you build credit in 6 months?

You can build credit in six months if you have a credit product in your name. A secured credit card, credit builder loan, student loan, auto loan, or even getting added as an authorized user on someone else’s credit card account can help. Remember, however, to exercise patience. Creditors need to see enough activity from you to report back to the bureaus on your payment history, utilization, etc.

About the Authors

Ann Schreiber

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann has been a marketer and a content writer for over 20 years. She worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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