Our headline is actually a little misleading (sorry), because there is no single quick way to get better credit. But there are some steps you can take to get you creditworthy as fast as possible.
1. Get your credit reports
There are three credit reports you need from the US Consumer Reporting Agencies (CRAs) or simply the credit bureaus - Experian, Equifax and TransUnion - and each owns a separate credit report about you. You can get them all for free.
2. Fix incorrect information
Fixing incorrect information IS the fastest way to change your creditworthiness. It doesn’t automatically mean you’ll get credit, but having accurate information is the first and most important step to improving your credit history. If there is anything wrong, let the bureau with the incorrect information know right away.
3. Get some history
Without any credit history how will lenders know whether you can manage repayments? Whether it’s a credit card, phone contract or loan repayment, making regular payments helps show lenders you can manage credit. The flip side is that missing or late payments will really count against you.
4. Use your credit wisely
If you have a credit card already, maxing out your credit limit doesn’t look good to lenders. As a general rule, try not to use more than 30% of your total available credit.
5. Get a Loqbox
Loqbox is a completely free way to build your credit history just by saving as little as $20 a month.
This post was written and compiled by the credit experts behind Loqbox – a completely free way to grow your savings and build your credit score.