In this video I discuss how to build credit fast. I first explain basic details about credit score and how it is determined. Thereafter I present 6 steps for building your credit fast.

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How to build credit fast is definitely on the minds of many young people and others with low credit rating. In order to build credit fast there are some steps that you need to take:

1. Acquire a secured credit card
The difference between a secured credit card and a normal credit card is that for this type of card you make a security deposit which is later used as your credit limit.

The issuer will report to the bureaus and in that way you build your credit history. If you use it responsibly you will have a good credit history.

If you already have a bad credit history acquiring this card may not be easy as only a few lenders can help you.

2. Find a co-signer
Another way to build your credit fast to ask a close relative or friend who has a good credit score.

You can ask that person to be a co-signer on a credit card. In this way, you can build credit by relying on their good credit score.

However, since this person will have access to your credit card you need to discuss with them first on how the card will be used.



The goal here is to make sure that your expenses are within certain minimum limits so that you don’t go beyond the limits sets.

It should also be pointed out at this moment that your co-signer is legally responsible for your debt.

You can also become an authorized user.
Another way to build credit is to ask a parent or close relative or friend to add you as an authorized user on one of their credit cards.

This effectively means that your actions as you use this card may affect their credit score too.

While being a co-authoriser may not have a major impact on your efforts to build credit in the short term, even its small impact can contribute to building credit.

3. Credit builder loan
If you do not want any of the above options then another way is to apply for a credit builder loan. You can get these loans from credit unions and local banks.

In this, you apply for a loan and once it goes through the borrowed amount is deposited into a savings account. Afterward, you will make payment until it is paid off.

You only access the savings account balance plus the interest it earned once you pay off the loan. The main purpose of this loan is to build credit