Having good credit is an essential element to enjoying many of the things life has to offer. From being able to purchase a new vehicle, a new home, or getting approved for a personal or business loan, your credit score can make or break your chances of being approved.
The reality is that there are thousands of people across the nation who at some point in their lives don’t quite have the credit score needed for approval, leaving them with the task of having to build or raise their credit score. There are a variety of options to choose from and below we’ll discuss ways to build your credit and also identify the fastest way to build credit.
Cosigner or Guarantor
One way to get approved for a loan and also build your credit is to apply for a loan with a co-signer. The co-signer is typically someone who has good credit or a credit score high enough to get approved for the loan all on their own. In this case, banks will use the co-signer’s credit, who will then be labeled as the guarantor or the person ultimately responsible for the loan. However, the downside is that this does not help you build your personal credit fast. In fact, many lenders, particularly for credit cards, may not allow a co-signer. In short, getting a co-signer may prove to be difficult because of all of the risks the co-signer must agree to take on. But even if you do get a co-signer, it doesn’t do a whole lot in terms of building your personal credit “fast”. This process takes time, we’re talking months if you go this route.
Credit Repair Techniques
A common technique that credit repair agencies use in an effort to build someone’s credit is by removing negative items of their credit report. To do this, the credit repair agency works with the individual to dispute negative items on their credit report. This process requires a written report or form to be filled out and either sent electronically or mailed to the entity responsible for reporting the monthly payments. Once the form is received, the entity has 30 days to respond. If the entity does not respond, the item will automatically be removed from your credit report. This option is effective, but it takes a lot of time, so if you’re looking for the fastest way to build credit, this option is not it.
Becoming an Authorized User
The only effective way of raising your credit fast is through credit piggybacking, also known as becoming an authorized user of someone else’s credit card who has good credit. By purchasing a tradeline from a tradeline company, you’ll be able to piggyback off of the person’s excellent credit to get help in raising your credit score, quickly. A tradeline is an account associated with credit, such as a credit card. When you purchase a tradeline, the person’s payment history is then added to your personal credit history, thereby increasing your credit score. There are two ways to become an authorized user. The first way is to ask a trusted friend or family member with good credit to add you as an authorized user on one of their credit cards, or the seond is by purchasing a tradeline online with a reputable tradeline company to build and boost your credit score fast. This is by far the fastest way to build your credit.
Leave a Reply