Fastest Way to Build Credit: 10 Simple Need-to-Know Tips

hi my name is Christian and this is a guide to help you improve your credit yourself instead of potentially falling prey to those credit repair scams I'll also help you discover the fastest way to build credit so let's get right into it before we get over the fastest way to build credit I think it's important to look at the big picture and that's specifically regarding statistics from 2008 up until now now the financial downturn of 2008 affected nearly everyone and maybe you like me were also faced with a few financial challenges in the wake of this although as a whole confidence has strengthened in the United States since then figures have shown on average that consumers are still recovering so it should be no surprise that many people are looking for the fastest way to build credit here's what we know by 2009 households as far as the credit card debt is concerned in the United States skyrocketed to an average of $20,000 in 2016 that figure stood at about sixteen thousand dollars also in 2016 it might be important to know that mortgages or about a hundred and eighty K average student debt was fifty thousand and auto loans on average for about 30 K so why do I think any of this information is important for you to know when it comes to the fastest way to build credit well because if you're if you're familiar with the information out there that you aren't alone the average person someone who's not a financial expert is also trying to manage a lot of debt and they're seeking the same advice but here's the good news the reduction in the average credit card debt that I mentioned from 2009 to 2016 it's a trend that happened by and large because credit card companies introduced measures over the years to make credit more accessible for people who demonstrated an ability to repay now with that all out of the way let's get to the fastest way to build credit now it stands to reason that your credit history won't be built overnight right so even though these steps I'll be recommending is the fastest way to build credit without dedication repetition and strict adherence you may not get the desired result as fast as you want so here are the ten simple need to know fastest way to build credit tips tip number one maintain a low utilization ratio be careful not to get carried away purchasing too many items that you really just don't need although it may enhance the standard of living for a while using credit to purchase once rather than needs can put you at more risk of damaging your credit especially if it becomes a habit now this is also especially important when it comes to avoiding paying interest and late fees with that try to maintain a utilization rate below 30% but to significantly improve your credit more quickly you need to make that at least 10% for example if your credit card limit is $5,000 try to keep that balance owed below 500 now tip number 2 pay your bills on time now the for the fastest way to build credit the best time which is on time to make your payment's is probably four before the statement closing date whenever your debt to credit ratio begins to climb too high and what exactly is too high well anything over 30% as we learned in tip number one you know payment history contributes to about 35% of your credit score so even if you can't afford to pay what's due on your statement before the closing date at least pay it on time in fact the fastest way to build credit is to pay everything from your household bills monthly rent utility bills and any medical bills all on time this will greatly enhance your credit score over time now if you need help making those monthly payments on time set reminders on smartphones or use other applications like Google Calendar which is what I use personally in my business and my personal life so make sure you do that now tip number 3 track your personal expenses this is really important because you need to know what you can cut down on you know this practice may seem a little bit of a nuisance in the beginning and a bit uncomfortable because essentially what I'm asking you to do is account for every dollar you spend but you can make this a lot easier in cut by cutting down on cash purchases that you make and using a debit card because as you know with a debit card those transactions are cataloged on a monthly statement so it's a less of a headache to track the spending alternatively there are so many expense trackers out there try a few that I work that I use that work for me because knowing what you spend money on is the fastest way to build credit because you'll be able to make the right decisions on what you can cut back on now as far as those expense tracking apps that I use mintcom creditkarma

com I suggest you check those out I'll leave links to their sites in the description of this video below tip number four if you can't cut down on expenses then increase your revenue streams now I realize that initially you know it's a lot easier said than done we all have 168 hours in a week and many of us have little to no spare time around work and play but just like tracking expenses we can track you know what we do on a daily basis to see if you may be able to fit in learning a new skill or freelancing online or even getting a part-time job again I realize this may be easier said than done however if you are able to replace say TV time for example with learning a new skill off of lyndacom or even YouTube you may be able to perform some freelance work online now for online work research sites like Fiverr calm or upworkcom and I'll leave links those sites in the description as well but if you're not sure what online freelance work you could do check out the link to the article in the description below 101 tasks to outsource to a virtual assistant to grow your business you know because online work it's not just for developers who know C++ and who can write code in their sleep I think you'll be pretty surprised at the number of things that you can do with just a bit of research to earn some extra money on the side tip number five make additional principle payments for loans when you can now some months you may receive extra income that you didn't anticipate your wealthy uncle might write you a check for your birthday or your father may have made a secret investment whatever the case is should this happen you can use that money to help make those additional principal payments and that will improve your credit score quickly which is why it's on the list of the fastest ways to build credit but with that always remember to use your credit cards as responsibly as you can drawing a clear distinction between what you want and what you really need tip number six get a secured credit card if you're anything like me a few years ago you might not have been able to qualify for a credit card secured credit cards are those cards that require an upfront payment as collateral once the payment is made you'll receive a card with the payment amount as the account minimum balance for instance if you pay $1,000 then your credit card limit will be $1,000 on that card and all transactions will be reported to credit bureaus just like any other card and as you use it responsibly it reflects well on your credit history so if you can't qualify for a credit card at the moment this really is the fastest way to build credit and it's one of the first things that I did to help build the credit for myself tip number 7 get a credit builder loan from your bank or credit union this is a type of loan that restricts withdraw the entire amount of the loan generally until the loan is paid off now this money is generally kept in an account that generates interest as your monthly payments are made into that count as well so once that loan is repaid the cash plus accrued interest becomes yours and the repayment is recorded and it goes into improving your credit history I'll leave a link in the description of this video where you can learn more about the three most common types of credit builder loans and how you know all the details of that can work so keep in mind though that the fastest way to build credit with a credit builder loan is to combine that strategy with all of the other ones that are listed in this video so with that tip number eight if possible become an authorized user on the credit card of someone that you can trust to be financially disciplined and someone who can trust you your name will be attached to their credit and you'll reap the benefits of their financial discipline and that goes a long way with respect to enhancing your credit history so you may may even make arrangements to not even have access to that card at all in other words you'll just be an authorized user as far as the bank is concerned but your friend and family member will be the only one using it now obviously this will vary drastically depending on what's agreed to but it's a great way to help build your credit quickly now tip number nine keep a close eye on your credit reports this is really important look out for errors because these errors do happen this is extremely important because with each credit bureau you have the ability to pull one free credit report each year to see what your FICO score is among Equifax Experian and TransUnion these scores may differ slightly but not all institutions will report to all three also creditkarmacom that I mentioned is a free resource that you can use to keep an eye on your credit keep in mind though that this site the score that's reflected is relatively close to what your score actually is but it's probably not 100% accurate nevertheless part of the fastest way to build credit is knowing where you can improve but also making sure that your credit report does not contain any errors at all now as you keep a close eye on your credit report and what's in your credit profile if you skip or miss any monthly payments all is not lost just fix it immediately now if you're a month overdue pay two months without hesitation if your able to do so tip number ten finally never take a loan out to repay another loan you may have heard of this as borrowing from Peter to pay Paul but if you have finished paying one loan off before applying for a new one it'll put you in a better position to build your credit more quickly now I know this video was the 10 simple need to know fastest way to build credit tips but as it so happens I wanted to give you a bonus to say thank you for sticking with me through this video because if you're still watching it it likely means that you found this video helpful so here goes here's the bonus tip now I've shared this information with friends and family and what many of them have found after taking action as they've discovered the fastest way to build credit alongside me is as long as their credit utilization ratio was below that 10% that I mentioned in tip 1 better yet their balance was even paid off they were able to get an interest rate reduction and an increase in their credit limit now making this happen is usually just as simple as a phone call my friend for example was looking to buy a washer and dryer for a wedding as a gift for her cousin so she called her credit card company and requested a credit increase she got it and what we then discovered is that by requesting a limit increase every six months and simply asking for an interest rate reduction it was typically granted provided that she was following the fastest way to build credit tips that are mentioned in this video and there are other ways to maintain good credit I know but as soon as you're granted a credit card limit increase the utilization ratio drops so that will have a positive impact on your credit now a little disclaimer here that I should let you know before we wrap this video up is that I am NOT a financial expert I'm just a regular guy with some tips that worked for me so when I needed that credit repair for myself it worked so I was looking for the fastest way to build credit and I wanted to share what I found that worked for me and what's worked for my friends and family it's also important to note that one of the reasons many of us seek to improve our credit is because we want to buy a home now if you're looking to improve your credit because you're wanting to purchase a house check out the video that I have can I buy a house with bad credit I'll put the video link in the description below now if you're looking to buy a home or sell a home in San Diego just reach out to us via phone at five hundred twenty four forty four that's area code six one nine five hundred twenty four forty four or send us an email at info at SDC hpcom or just visit the website sdcch be calm for more information hey thanks for watching if you like this video please subscribe to our channel to ensure that you don't miss all of our tips and tricks about all things real estate and beyond and follow us on social media too if you didn't like this video please subscribe to our Channel and let us know how we can improve do leave comments in the comment section below if you have any questions and we will do our best to answer them once again thanks for watching this is Christian from say diego county homebuyers the real estate team you love and know we're the ones that know your home san diego see you on the next one