Best Way To Increase Your Credit Score Quickly?

Oct 27, 2017
4,603
#1
ERA, recently I applied for credit cards from multiple places and was declined all over the place. However, I was always offered a Secured Credit Card. Turns out, I don't really have any credit because I've never done anything to build it lol. I've always bought used vehicles and etc. Never had a line of credit before. So now, I have a Secured Credit Card and I'm looking to build my credit score in the quickest, but safest way possible. I'm getting older and would like to own a new vehicle or a home, but I can't do those things without raising my credit score.

Any of you have any advice to safely raise my credit score quickly? Should I just pay for everything with this card and pay it back early? I don't know anything about this lol.
 
Oct 26, 2017
1,414
#2
Don't put more than 30-ish percent of the limit on the card and pay it off in full every payment period. That's what I was always told in terms of building credit with cards.
 

gdt

Member
Oct 26, 2017
1,903
#3
Pay everything on the card, pay the statement monthly when it pops. 3 to 6 months you'll probably be able to get another card.

I assume you pay all your bills, car notes, etc on time and in full as well. If not, do that.

At the moment, your options are limited since you only have 1 path in front of you. After you get loans and more credit cards you can use them all responsibly and have them all working for you and your credit.

Edit: ahh yes, try not to use 30% or more of your credit limit. If you go over 30%, consider paying whatever amount off early before your statement posts, so it lands under the 30% amount.
 

Fat4all

Community Resettler
Member
Oct 25, 2017
15,653
bork land
#4
i did it the old fashioned way

by having three credit cards by the time i turned 20, had lots of debt until 25, then slowly started paying it off by 30
 
Oct 27, 2017
3,612
Miami, FL
#5
Don't put more than 30-ish percent of the limit on the card and pay it off in full every payment period. That's what I was always told in terms of building credit with cards.
This is true.

The best way you can increase it is running a small balance and paying it off consistently. Having a few varying types of loans is also preferred but kind of unrealistic unless you’re willing to finance a car or something instead of buying a used one outright.

What’s tracked is your usage %, length of credit history, varying types of credit, etc.
 
Oct 27, 2017
7,469
#6
Start figuring out which bills can be paid with a credit card, and utilize that aspect to help you build up the credit, but make sure to pay it off in full.

This is a good practice since you would have had to pay those bills anyways.
 
Oct 27, 2017
3,602
#7
Keep the balance on your statement each month between 1% and 9% of your credit limit and then pay it in full every single month. After around six months or so you may start qualifying for regular credit cards which you want to do the same thing with.
Don't ever run a balance and not pay in full. It won't improve your credit and only costs you money in the form of interest.
 
OP
OP
TaterTots
Oct 27, 2017
4,603
#8
So, its best to use it to pay my utilities or something? I was thinking I'd use it just for purchasing gas or something, but if that doesn't help as much I can use it to pay a couple of bills.
 
Oct 27, 2017
2,660
America
#9
Keep the balance on your statement each month between 1% and 9% of your credit limit and then pay it in full every single month. After around six months or so you may start qualifying for regular credit cards which you want to do the same thing with.
Don't ever run a balance and not pay in full. It won't improve your credit and only costs you money in the form of interest.
This is correct. Under 10%, not 30%, is the best.
 
Oct 27, 2017
3,602
#10
Just use it to buy what you were going to buy anyway. If you want to use it on utilities or gas it doesn't matter which as long as you keep the statement balance under 10% of your credit limit.
Utilization (how much of the credit limit you are using) according to Credit Karma and other sources:
0% - not good
1% to 9% - best
10% to 29% - good but not as good as under 9%
30% to 49% - caution
50 to 74% - not good
75% to 100% - Danger Will Robinson, danger!
 
Jan 8, 2018
1,302
earth
#11
The balance of your credit card doesn't mean shit as long as you pay it off. It's the balance after you make your payment that's reported to the credit bureaus that counts.


Anyone know anything about this new program Experian Boost and similar things that are coming out this year and if they're worth it? Sounds sketchy as all hell but might be worth it for some people.
 

gdt

Member
Oct 26, 2017
1,903
#12
So, its best to use it to pay my utilities or something? I was thinking I'd use it just for purchasing gas or something, but if that doesn't help as much I can use it to pay a couple of bills.
Put everything you can. Everything.

After a couple months of that you can work your way up to a better card. Whether that's travel or cash back or etc.
 
Oct 29, 2017
1,770
#13
So, its best to use it to pay my utilities or something? I was thinking I'd use it just for purchasing gas or something, but if that doesn't help as much I can use it to pay a couple of bills.
use it for everything, assuming you don't have an addictive personality or spend more than 30% of your income. in which case, reconsider credit cards, they make money off of people who aren't careful.
 
Oct 27, 2017
3,043
#14
Don't put more than 30-ish percent of the limit on the card and pay it off in full every payment period. That's what I was always told in terms of building credit with cards.
I dont think it always works this way. I paid tuition with my credit card and gradually paid off the card. I gained a very good credit score (and a high credit limit).
 
Oct 27, 2017
3,602
#16
The balance of your credit card doesn't mean shit as long as you pay it off. It's the balance after you make your payment that's reported to the credit bureaus that counts.


Anyone know anything about this new program Experian Boost and similar things that are coming out this year and if they're worth it? Sounds sketchy as all hell but might be worth it for some people.
No. It is your statement balances that are reported to the credit bureaus each month.
 

gdt

Member
Oct 26, 2017
1,903
#17
I dont think it always works this way. I paid tuition with my credit card and gradually paid off the card. I gained a very good credit score (and a high credit limit).
This is a bad idea. You paid interest. And probably very high interest unless you went with a 0% interest card. Hope you got cash rewards or something.
 

gdt

Member
Oct 26, 2017
1,903
#19
The balance of your credit card doesn't mean shit as long as you pay it off. It's the balance after you make your payment that's reported to the credit bureaus that counts.
Sorry you are wrong. You can see exactly what gets reports using CK and you'll see that they have your statement balances on file. Won't update for a month when you get a new statement balance. Keep that number under 30%, 10% if you can.
 
OP
OP
TaterTots
Oct 27, 2017
4,603
#20
Put everything you can. Everything.

After a couple months of that you can work your way up to a better card. Whether that's travel or cash back or etc.
use it for everything, assuming you don't have an addictive personality or spend more than 30% of your income. in which case, reconsider credit cards, they make money off of people who aren't careful.
Well, its a secured card with only $200 of credit lol. I got to start somewhere though.

For one...stop doing this!
I just applied! I first tried Discover and was declined even for a secured card. Capital One was the only one to approve it with a small deposit.
 

gdt

Member
Oct 26, 2017
1,903
#21
Well, its a secured card with only $200 of credit lol. I got to start somewhere though.



I just applied! I first tried Discover and was declined even for a secured card. Capital One was the only one to approve it with a small deposit.
Ahh ok. So put everything on the card, then pay it off in the app. Whatever you can put on there. You'll make quick gains.
 
Oct 27, 2017
1,977
#22
My first bit of credit was my student loans at age 26 and I had a really high credit score as a result when I graduated. I've only accumulated debt since and my credit score has only ever gone up. As far as I can tell, the best way to build credit is to just not miss payments on anything. I have had two credit cards (paid down now) that are above the preferred credit utilization according to Credit Karma that says it is hurting my score, but my score has never gone down. I'm not complaining, but I find the whole thing really confusing.
 

gdt

Member
Oct 26, 2017
1,903
#23
My first bit of credit was my student loans at age 26 and I had a really high credit score as a result when I graduated. I've only accumulated debt since and my credit score has only ever gone up. As far as I can tell, the best way to build credit is to just not miss payments on anything. I have had two credit cards (paid down now) that are above the preferred credit utilization according to Credit Karma that says it is hurting my score, but my score has never gone down. I'm not complaining, but I find the whole thing really confusing.
Try to have the limits of those cards raised. Higher limit-better utilization percentage.

They are probably holding you back from a better ish score.
 
Oct 27, 2017
3,602
#24
Well, its a secured card with only $200 of credit lol. I got to start somewhere though.
If your limit is just $200 than keep your balance between $2 and $18 every month when the statement is generated. Yes that's not much but it's how you play the credit game. If you do put something on the card that makes it go over $18 you can pay it down before the statement generates but don't pay it off entirely because you want a small balance to show every month.
 
Nov 6, 2017
478
#25
I'd also recommend working with a local credit union instead of a bank if you were looking to get additional lines of credit or a vehicle. They are likely to be more forgiving and work with you.
 
Oct 27, 2017
1,977
#26
Try to have the limits of those cards raised. Higher limit-better utilization percentage.

They are probably holding you back from a better ish score.
Discover and CitiBank were happy to do that on their own constantly as I payed them off. Not really using those cards much anymore.
 
Jan 8, 2018
1,302
earth
#27
Sorry you are wrong. You can see exactly what gets reports using CK and you'll see that they have your statement balances on file. Won't update for a month when you get a new statement balance. Keep that number under 30%, 10% if you can.
I guess I worded it wrong, what I meant was you can utilize all of your credit but as long as it's paid off before the statement is cut then it doesn't matter. It's typically you have a due date, then the statement is cut a few days later, and the balance is reported right around then (I think typically shortly after that). So it's a matter of timing. If you have a credit limit of $1000, you don't have to avoid using all of that credit in a month if you're worried about the balance reported as long as you pay it off.
 
Oct 27, 2017
3,602
#28
I'd also recommend working with a local credit union instead of a bank if you were looking to get additional lines of credit or a vehicle. They are likely to be more forgiving and work with you.
That is another thing you can do which gives you another form of credit. More types of credit help you versus just having credit cards.
You can get a secured personal loan of like $250 or $500 at a local credit union purely to build credit. The interest rate should be really low as the money is secured. Your savings are used as collateral meaning you have to keep a minimum amount in there equal to whatever the loan amount is.
 
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Oct 25, 2017
1,222
#29
I never had a credit card until I was 30 but I bought a house when I was 24 and have had various car payments over the years. I'm 40 now and my credit score was 820 late last year and that was down from the last time I had one run back in like 2014.

Basically pay your bills and never keep a balance. I have never once had a balance or paid any interest on any of my credit cards or ever missed a car/mortgage payment. Pretty simple strategy and your score will increase without you even realizing it.
 
Oct 25, 2017
3,494
#31
You don't need to keep a balance under 10% or 30%, you just need to pay it off in full every month.

If have positive flow, you can spend your entire budget on your credit card, then pay it off completely, and you'll have good credit in no time. This works really well if you have a cash back rewards card because you'll end up getting back 1-3% of what you spend as free money.

The key is to only spend what you have budgeted. Don't fall for the trap of spending more than you have, then paying it off overtime - something will come up and you'll end up going over budget, and you'll find yourself in a hole paying interest.
 
Oct 25, 2017
3,439
#34
My first bit of credit was my student loans at age 26 and I had a really high credit score as a result when I graduated. I've only accumulated debt since and my credit score has only ever gone up. As far as I can tell, the best way to build credit is to just not miss payments on anything. I have had two credit cards (paid down now) that are above the preferred credit utilization according to Credit Karma that says it is hurting my score, but my score has never gone down. I'm not complaining, but I find the whole thing really confusing.
A lot of people do, but just think about what the score is supposed to do. It tells someone who is about to give you money, often a massive amount of money for something like a mortgage, what your history with borrowing and repaying money is like. That will more or less explain the unintuitive aspects of credit (EG people think having zero debt is good, but to a loaner, that just means you're a total question mark).

You yourself have multiple kinds of debt, it goes up, and you don't miss payments. That's why your score is going up. People look at that history and think "we'll get our money back."
 
Oct 27, 2017
528
#35
Wait. Just wait.


Hint* take out small loans and pay back on time. Open lines of credit and a good history

Watch out for credit utilization. It will fuck you for a bit, but it's a necessary step.
 
Oct 25, 2017
3,494
#38
I carry a pretty high balance and my credit score is like 810 for some reason
Utilization is just one of many factors considered. If you carry a high balance but have a history of making your payments on time, and have accounts that have been open for a long time, it can offset your utilization.
 
OP
OP
TaterTots
Oct 27, 2017
4,603
#39
To the people in here telling me to take out loans and etc. I can't. Hell, I was looking into financing for a vehicle and was declined. I'm not in debt and my score is really low. Like 530 I think it said. Maybe just a hair less. Others have told me its because I've never had a line of credit before, but I don't know how I'm suppose to raise it if I can't get approved for anything. I've just settled on the secured credit card as a start.
 
Oct 27, 2017
3,602
#41
Being responsible for utility bills helps a LOT.
Doesn't help in the slightest bit. Paying your utility bills isn't reported to any of the three credit bureaus. The utility companies are not giving you credit and the only time they report anything is if you're sent to collections.

Utilization is just one of many factors considered. If you carry a high balance but have a history of making your payments on time, and have accounts that have been open for a long time, it can offset your utilization.
Utilization absolutely matters. Here's how it shakes out when it comes to factors affecting your credit score:
Payment history: high impact
Utilization: high impact
Derogatory marks (collections, bankruptcy, etc.): high impact
Age of your credit: medium impact
Total number of accounts you have: low impact
Hard inquiries (caused by applying for credit): low impact

Yeah, you can overcome utilization to a degree with other factors but it really doesn't do you any favors having it high.
 
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Oct 26, 2017
349
#42
To the people in here telling me to take out loans and etc. I can't. Hell, I was looking into financing for a vehicle and was declined. I'm not in debt and my score is really low. Like 530 I think it said. Maybe just a hair less. Others have told me its because I've never had a line of credit before, but I don't know how I'm suppose to raise it if I can't get approved for anything. I've just settled on the secured credit card as a start.
I had no credit when I bought my first car, needed to have my father co-sign. What I did was take out a very small loan from the bank, at the bank's suggestion. Then I was able to get a bank approved credit card. I was in good standing with my bank and I had the credit I needed pretty quickly.
 

ZealousD

Community Resettler
Member
Oct 25, 2017
1,414
#43
Have lots of accounts.
Get your credit limits as high as possible.
Keep your balances low.
Don't miss payments.
 
Jan 8, 2018
1,302
earth
#44
Doesn't help in the slightest bit. Paying your utility bills isn't reported to any of the three credit bureaus. They're not giving you credit and the only time they report anything is if you're sent to collections.
Hence the question in my first post, and these new programs like Experian Boost. You basically give them access to your checking account and they check for various things such as utility bill payments.
 

Cow

Member
Oct 25, 2017
729
#47
Credit scores are mostly a myth once you build a relationship with a bank or whoever is providing credit. Utilisation matters very little. You want to look at building a relationship with your bank rather than this nonsense about paying in full and utilisation.

You're good aslong as you keep to payments, do not go over your limit and do not absolutely rinse your credit to like 99%. It is absolutely fine keeping to 70-80% of your limit. You do not need to pay off your card in full every month either. Anyone who does that nonsense has fallen for the credit meme.
 
Oct 25, 2017
114
#48
When I first started off with no credit about a year ago, Capital One gave me a platinum and a quicksilver, Credit One gave me a platinum too. Wells Fargo gave me a Cash Wise for 5x as much as the others too, not sure why. Maybe because I'd been a customer for 13 years and they look could look at my checking accounts, dunno.
 
May 17, 2018
1,865
#49
I mean, if what you want is the fastest way, nothing will be faster than moving to a country where the only think that matters is how much money and debt you have currently and how much you make in a stable job instead of looking at your history and past.

I never understood this system about building a score. You could be great with your money, always pay rent and everything on time, save up, have a good job and yet struggle to buy a house or car because you never took a loan or only needed a debit card. I also think it punishes low income people who have bad score because they were dealt shitty cards that rich people wouldn't have struggled with because, you know, they have money. It is also extremely unfair to immigrants.

I can't think of an example where this system benefits anyone but financial institutions and wealthy people. Common people can, at best, end up in a situation where the credit meant the same situation they'd have found under a different system and, at worst, well, much worse.

I also think it's contradictory: "you have bad credit because you never took loans". Duh, I never had to borrow cash, shouldn't that tell you something about how I handle my money?