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Key Takeaways:
- Using a secured credit card, a credit builder loan, or becoming an authorized user can help you build credit fast.
- The best way to build credit is to pay your bills on time. This affects your credit score more than any other factor.
- It generally takes several months to establish your credit score.
Having strong credit can make your financial life easier. With a high credit score, you usually have your pick of the best loan offers with low interest rates and a higher chance of approval. Plus, you can qualify for rewards credit cards that help you earn cash back and travel points.
But what if you’re just starting your credit journey? Are there ways to increase your credit score fast?
Below, we’ll discuss how to establish credit quickly, including steps like using a secured credit card, becoming an authorized user, and always paying your bills on time.
How fast can you build credit?
Building credit usually takes about 6 months of consistent, responsible use of credit accounts before you can establish a score with major credit bureaus.
It takes this long because your credit history needs enough data — like on-time payments and account activity — for scoring models such as FICO® or VantageScore® to generate a rating.
Big credit score jumps don’t happen overnight, but consistent good habits can lead to steady progress. You might start seeing improvements in as little as 30 to 45 days.¹
The exact time frame can vary depending on how often lenders report your activity and the types of credit you’re using.
How to increase your credit score quickly
You can build credit, but if you want to do it fast, you need to put a little pep in your step. Here are seven proven ways to establish credit quickly.
1. Open a credit card to build credit fast
A great way to start building credit is by signing up for a new credit card. At first, you might have limited options, so you should start with the best credit cards to build credit fast.
Creating credit history with a card can jumpstart your journey toward becoming a stronger candidate for future lines of credit. Some options to consider include:
Secured credit card
A secured credit card may be the best path forward if you’re trying to establish credit as a beginner. Secured credit cards are designed for borrowers with poor credit (or no credit at all). You’ll typically need to make a small security deposit as collateral, and then you can use the credit card for everyday purchases.
Get started with the Chime Card™. It comes with no annual fees or interest², no credit check to apply, and no minimum security deposit required³.
Student credit card
If you’re a student, one of the smartest credit building strategies is to consider applying for a student credit card. These cards can help you build credit if you have minimal credit history or you’re starting from scratch. You can use it like a normal credit card, but it often comes with lower credit limits.
To build credit fast, avoid maxing out your student credit card and aim to pay your bills on time each month.
After you get your first card, use it for small, everyday purchases you can comfortably pay off. By paying your balance in full each month, you’ll start creating a solid history of on-time payments — a crucial step in showing lenders you can borrow responsibly.
2. Build credit by becoming an authorized user
Becoming an authorized user on a credit card is another way to start building credit. A trusted family member or friend can add you as a user to their card. Their responsible usage – low credit utilization and on-time payments – reflects on your credit report (and likely will your score a boost).
That means you can demonstrate responsible credit card management and start establishing credit without technically opening a credit card yourself. This can helpful if you’re aiming for a quick credit jump, as opening a credit card temporarily lowers your score.
That said, this is not without risks. Becoming an authorized user means you have the potential to affect someone else’s finances. You’ll get your own card to swipe as you please, but the primary account holder is responsible for the payments. Be respectful as an authorized user. Ask before using the card, and pay your loved one back right away.
3. Get a loan to establish credit
Taking out a loan can also help you to start building credit.
If you’re just starting out and don’t have much credit history yet, an installment loan can help you build your score over time. Auto loans, mortgages, personal loans, and student loans are all examples of installment credit.
You have a few different options, including:
- Secured personal loan. A secured loan requires you to put forward an asset as collateral, such as your house, boat, or car. Making on-time payments can help you build your credit. If you can’t repay your loan, the lender can take possession of your collateral.
- Credit builder loan. Instead of a lender issuing you a lump sum of money like a personal loan, with a “credit builder” loan, you pay the lender in monthly installments plus interest. The lender deposits these payments into a savings or certificate of deposit (CD) account. Once you finish paying the installments, you get access to the money. Your payments are reported to the credit bureaus, which can help you establish your credit.⁴
Just make sure the lender reports to all three credit bureaus (Experian, TransUnion and Equifax).
4. Pay your bills and loans on time
Credit where credit is due
You don’t have to figure out how to raise a credit score fast alone. And as you can see, you can establish credit quickly if you know the right steps to take.
While we’ve highlighted a few habits to improve your credit score faster, like getting a secured credit card and becoming an authorized user, establishing credit is a process. In time, you’ll have your credit score in a healthier spot, making it easier to finance life’s big purchases.
Ready to start your credit journey? Here’s everything you need to know about how credit reporting works with Chime.
Establishing Credit FAQs
How long does it take to establish credit?
How long it takes to establish credit from scratch depends on which credit score you use. With FICO, it can take about six months, and you’ll need to have one open credit account, like a credit card or loan, that reports to at least one of the major credit bureaus.⁵ With VantageScore, you can establish a score as soon as your first account is reported to the credit bureaus.
Can you establish credit with a debit card?
No, you generally can’t establish credit with a debit card. When you use your debit card, you’re withdrawing money from your checking account. You aren’t borrowing money, and your debit activity isn’t reported to the credit bureaus.
Does paying rent build credit?
It is possible to use your rent payments to build credit.⁶ To have positive rental payments reported to the credit agencies, you can ask your landlord if they participate in a rental reporting program.
Payment history accounts for 35% of your FICO® credit score.⁴,† That means on-time payments impact your credit more than any other factor.
If you have late payments on your credit report, you won’t be able to get those removed (unless they’re an error). But here’s how to avoid late payments going forward:
5. Reduce your credit utilization
One solve for how to quickly increase your credit score is to lower what’s called your “credit utilization rate.”
Credit utilization is the amount of available credit that’s in use. It accounts for 30% of your credit score.⁵ By lowering how much available credit you use, you will lessen your credit utilization and raise your credit score.
Here are two simple ways to maintain a low credit utilization rate:
You can also request a credit limit increase after you’ve had your card for a few months. This raises your available credit, and if your spending stays about the same, it lowers your credit utilization — a strong sign of responsible money management.
6. Treat your credit card like a debit card
With a credit card, you can swipe freely up to your credit limit, even if you don’t have the money in the bank. If you can’t afford to pay off your card in full, you’ll begin to carry a balance.
This means you’ll start accruing high-interest credit card debt, and your credit utilization will be higher than if you’d paid off the card in full.
When you use your debit card, the money is taken from your checking account. You typically can’t complete the transaction if you don’t have the funds.
To establish good credit, treat your credit card like a debit card. Only use it for purchases you can afford and aim to pay it off in full each month.
7. Build credit with everyday bills
You’re likely paying regular monthly bills like your phone, rent, or other various utilities. Unfortunately, you’re probably not getting credit for making those payments on your credit report.
If you apply for the Chime Card, you can earn credit just for paying your regular bills on time. At the end of each month, Chime reports your on-time payments to the major credit bureaus. Consistent use can build your credit and payment history and create more credit diversity in your report.