Best Way To Increase Your Credit Score Quickly?

[Masoyama]

You can get a reverse loan right? When I first moved to the US, I immediately opened a line of credit but not everyone that moved at the same time as me did. A couple of years later a friend that never did had to raise his credit number quickly for a car loan or something and he used this reverse loan thing from the local credit union. Basically you commit to pay like $200/month for a year and then the bank gives you the money back. I never looked into it so I dont know how much it helps, but he said it worked.

 

[TaterTots]

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.

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I don't have anyone to co-sign. Most of my family is worse off than I am.

 

[Magni]

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.

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That's what I started off with ~5 years ago when I first moved back to the US. I got a $200 secured C1 card in August. I spent ~$70 a month for three months was able to get a $500 Chase Freedom in December (it might have helped that my primary bank is Chase and they could see how much I made/spent?).

Five years later I have ~$60k total of CL, which helps that utilization ratio stay low. That plus years of always on time (and always in full, don't piss away money paying interest) payments across multiple accounts with no enquiries (since they drop off after two years) and I have a score in the 750-800 range depending on who you ask.

tl;dr: it takes time, pay on time, slowly make your way up to better cards with higher limits.

Fake edit: always ask for a soft-pull CLI so that it doesn't hit your credit report.

In terms of high limits, Amex let's you ask 3x every three months IIRC (might have changed so double check), it's how I went from $2k to $18k in half a year.

 

[One Eyed Willy]

I faced this back in my 20s, I never had credit so I couldn't get credit (beyond college years). Got a secured cared and worked my way up. A couple car loans really lept my score, no late payments of course and clearing any BS off your record. Time + increasing your limits + avoid cancelling cards.

~850 fico now, takes time really. Once you cross the 800 mark you get A paper and can afford most things because of 0% APR or whatever.

 

[Deleted member 1635]

I carry a pretty high balance and my credit score is like 810 for some reason

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High income?

 

[Stuart444]

I'm in a similar position to you op. Applied for a C1 card and got £200 credit limit. Waiting on the card and pin to come in now.

 

[TaterTots]

That's what I started off with ~5 years ago when I first moved back to the US. I got a $200 secured C1 card in August. I spent ~$70 a month for three months was able to get a $500 Chase Freedom in December (it might have helped that my primary bank is Chase and they could see how much I made/spent?).

Five years later I have ~$60k total of CL, which helps that utilization ratio stay low. That plus years of always on time (and always in full, don't piss away money paying interest) payments across multiple accounts with no enquiries (since they drop off after two years) and I have a score in the 750-800 range depending on who you ask.

tl;dr: it takes time, pay on time, slowly make your way up to better cards with higher limits.

Fake edit: always ask for a soft-pull CLI so that it doesn't hit your credit report.

In terms of high limits, Amex let's you ask 3x every three months IIRC (might have changed so double check), it's how I went from $2k to $18k in half a year.

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This post brings me hope, but I have to admit I have no idea what CL and CLI means. Credit limit?

 

[Antrax]

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?

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Well yeah, but the score tells them how good you are at paying off debt. How likely are you to trust somebody with 6 or 7 figures (for a house, for example) if they tell you they've never paid anything back before?

High income isn't everything. You could lose that job and then the payments dry up. A good credit score takes time, and generally shows you to be more stable financially (as opposed to just having a decent income right at that moment).

This post brings me hope, but I have to admit I have no idea what CL and CLI means. Credit limit?

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Yeah, and credit limit increase. The increases are good because utilization is a percentage (higher limit, higher amounts used while still staying under 30%). But you want soft inquiries if possible; it's a ding* against your score to be asking for more money.

On the personal loan suggestions, they were saying for amounts like $200 from a credit union. Those are nicer co-op places instead of big banks, and they loan people that amount a lot as credit boosters under the guise of personal loans (IE you say it's to get some work done on your house or whatever). You can ask for their advice (super helpful) and ask for a loan of around your secured card's limit.

*a very small one that disappears after like a year of no inquiries though. It's a necessary step to building up accounts.

 

[BigMack]

My gf didn't have any credit a year ago. She got one of those entry level credit cards with a $250 limit. She just got her gas on it every week and paid it off in full each month. Now one year later her credit score is 700.

 

[Trup1aya]

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 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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I never said it didn't matter. The guy has high utilization, but still has a high credit score and he didn't know why. I was telling him why.

 

[Trup1aya]

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.

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This isn't falling for a meme... Its a great way to manage your budget without ending up in unmanageable debt.

It's "fine" keeping your limit to 70-80%, but you'll be paying interest every month. If you constantly pay your card off, you get the benefits of a high score (lower interest rates on any future loans, easier time getting loans, etc), plus any of the cards perks, plus no interest to worry about.

Also, people might need to do business where more that one lender. Thats where credit score comes in.

 

[skeezx]

I carry a pretty high balance and my credit score is like 810 for some reason

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same. though mine is more like 780 or something, i'm juggling all kinds of high balances.

 

[Necromanti]

I had zero credit history in the US and didn't get my first credit card until a few years ago (after I got a job), but Chase gave me a card with a $500 limit. It took a supervisor directly approving it after me talking to them for it to happen, though. It probably helped that I had been with the bank for a few years. Most of the people I knew started with a secured card and went on from there.

After a year, they raised the limit and I applied for a second card. My score almost stopped me from renting a cheaper apartment at first, but after 3 years or so, it was up to ~772. I didn't use my cards for rent or utilities.

 

[Acorn]

Have a lot of debt and make regular payments haha. Nah but the best way is to put some stuff on your credit card and pay it all off at the end of the month before interest kicks in.

I used to put all day to day spending on my credit card and pay it off monthly just for the credit bump.

 

[Advance.Wars.Sgt.]

Get a line of credit from Fingerhut, purchase something on that line of credit, make your payments, and BOOM your credit score will raise a good amount.

Fingerhut is a website specifically designed to help those with low to non-existent credit build a credit history and increase their score. So try that out as an option.

 

[Cow]

This isn't falling for a meme... Its a great way to manage your budget without ending up in unmanageable debt.

It's "fine" keeping your limit to 70-80%, but you'll be paying interest every month. If you constantly pay your card off, you get the benefits of a high score (lower interest rates on any future loans, easier time getting loans, etc), plus any of the cards perks, plus no interest to worry about.

Also, people might need to do business where more that one lender. Thats where credit score comes in.

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You don't want to be avoiding interest. Lenders want you to pay interest on your card. The more interest you pay, the more they will want to keep you as a customer. You can absolutely rinse your cards out and still maintain a good relationship with the lender aslong as you don't go over your limit or miss payments. That is all that needs to be avoided. All this ''stick to 20% of your limit'' nonsense is pointless. What is even the point? It's all a myth. All that is important is showing you can stick to payments and not go overdrawn.

 

[Deleted member 21411]

I went from 680 to 740 from this time last year to now with only student loans as credit in my name. The secret, only applied to cards I knew I would be accepted for and paid in full.

Honestly I treat credit cards like debit cards, I pay as soon as i can. I pay off my cards the day i have a balance

 

[Trup1aya]

You don't want to be avoiding interest. Lenders want you to pay interest on your card. The more interest you pay, the more they will want to keep you as a customer. You can absolutely rinse your cards out and still maintain a good relationship with the lender aslong as you don't go over your limit or miss payments. That is all that needs to be avoided. All this ''stick to 20% of your limit'' nonsense is pointless. What is even the point? It's all a myth. All that is important is showing you can stick to payments and not go overdrawn.

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You want to minimize your interest payments. Period. That money that you are spending you could investing elsewhere and earning ROI/ interest rather that giving it away in exchange for a "relationship". Maintaining a high utilization means that your paying more in interest than someone who has low utilization- There's no benefit to that - creditors are absolutely cool with having both types of customers. There's also no negative effect to paying your balance in full - A creditor isn't going to want to lose you as a customer simply because you stay under budget. If anything, they'll start offering you higher limits more frequently (which lowers your utilization and increases your score) in hopes that you'll be more comfortable borrowing more and eventually leaving a balance.

If you pay your balance off routinely, you'll quickly amass a large credit line, a high credit score, and can even make a profit just by using your card for everyday purchases.

I agree, it's a myth to say that you must stay below 20%, but it's a safe practice, especially for people who are new to the credit scene. the truth of the matter is, having high utilization can make additional lenders leary of lending because they'll assume you are close to maxing out your budget and won't be able to repay. And it can put you in a bind if you run into an emergency.

Your point really only makes sense of you stick with a single lender. The whole point of a credit score is to ease the conserns of new lenders.

 

[gdt]

You don't want to be avoiding interest. Lenders want you to pay interest on your card. The more interest you pay, the more they will want to keep you as a customer. You can absolutely rinse your cards out and still maintain a good relationship with the lender aslong as you don't go over your limit or miss payments. That is all that needs to be avoided. All this ''stick to 20% of your limit'' nonsense is pointless. What is even the point? It's all a myth. All that is important is showing you can stick to payments and not go overdrawn.

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This is insanity. Why flush money down the drain paying interest?

 

[Cow]

This is insanity. Why flush money down the drain paying interest?

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If you don't want to pay interest then don't borrow money. If your aim when borrowing money is to avoid interest then you are doing it very wrong. Your aim should be to pay as much interest as possible every month. This is how you become a profitable customer.

 

[gdt]

If you don't want to pay interest then don't borrow money. If your aim when borrowing money is to avoid interest then you are doing it very wrong. Your aim should be to pay as much interest as possible every month. This is how you become a profitable customer.

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Ahh wat

Why voluntarily give up money? The game is to reap rewards (miles and cash and better credit) while not shelling out extra cash.

 

[Spinluck]

Credit Karma.

Listen to everyone in here that tells you to pay it off in full.

If you can afford to and have the discipline, put everything on your card and pay it off in full every month. Like someone said, they only see the balance after that payment. Seeing as how you'll likely get a secured card your credit limit probably won't be high.

If the above isn't your style then just put Netflix, gas, gym bills, phone bills, and any other subs or bills on the card and just pay it all off every month. Rinse and repeat. I began to see an instant change.

 

[Spinluck]

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?

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It's a garbage system and is mostly completely ass backwards. But you can totally play the game and game the fuck out of it.

 

[Orbis]

I had basically no credit history, so just started putting as much monthly spending onto a basic credit card and paying off in full every month so I never paid a penny of interest, my score ended up in the 700s after a year or so as a result. I then took out a car finance which bumped it into the 800s within a few months, and finally I got a mortgage a few months later, which has now left it at 999 for several years.

 

[faceless]

I had no credit and no credit score 36 months ago. It's almost at 800 now and I have gotten thousands back in cash back and have not paid one cent in interest since I pay off my balances in full every month and keep my utilization under 10%, though that only took actual effort in the first year.

I treat the system like a video game.

 

[Antrax]

OP, do not listen to this person lol

If you don't want to pay interest then don't borrow money. If your aim when borrowing money is to avoid interest then you are doing it very wrong. Your aim should be to pay as much interest as possible every month. This is how you become a profitable customer.

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Literally no one wants to pay interest on anything. Why would you? You pay interest because you borrowed money, and you borrow money because you don't have enough of it to buy something. 99% of the public can't afford things like a house out of pocket, so they need to borrow. But banks won't hand you 6 or 7 figures if you don't have any credit history, so that's why you gotta build that up while paying the least amount of interest as you can.

Saying "your aim should be to pay as much interest as possible" is completely insane. That's the same thing as saying "your aim at a pawn shop is to pay the most money possible. That way they know you're a good customer."

 

[Cow]

OP, do not listen to this person lol



Literally no one wants to pay interest on anything. Why would you? You pay interest because you borrowed money, and you borrow money because you don't have enough of it to buy something. 99% of the public can't afford things like a house out of pocket, so they need to borrow. But banks won't hand you 6 or 7 figures if you don't have any credit history, so that's why you gotta build that up while paying the least amount of interest as you can.

Saying "your aim should be to pay as much interest as possible" is completely insane. That's the same thing as saying "your aim at a pawn shop is to pay the most money possible. That way they know you're a good customer."

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The pawn shop comparison is not a good one because you are not looking to build a relationship with a scummy pawn shop. When building a relationship with a lender, you want to pay them as much interest as you can to keep them interested. Lenders hate it when you pay off in full every month and start avoiding interest over long periods of time. A customer who pays money with interest is far more valuable than these crazy lunatics who meme the lender and stick to 10% of their limit. You want to be a good customer in the long term then pay interest.

 

[gdt]

The pawn shop comparison is not a good one because you are not looking to build a relationship with a scummy pawn shop. When building a relationship with a lender, you want to pay them as much interest as you can to keep them interested. Lenders hate it when you pay off in full every month and start avoiding interest over long periods of time. A customer who pays money with interest is far more valuable than these crazy lunatics who meme the lender and stick to 10% of their limit. You want to be a good customer in the long term then pay interest.

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You are giving out incredibly irresponsible financial advice. As far as I know, no one, besides you, has ever advocated this viewpoint.

 

[Cow]

You are giving out incredibly irresponsible financial advice. As far as I know, no one, besides you, has ever advocated this viewpoint.

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What is irresponsible about borrowing money and paying on time with interest? I am just saying that using 10% of your limit and paying off in full every month is nonsense. It will build credit, but it is not the only way. You absolutely can use you cards as normal with like 80% utilisation, not pay back in full and still build credit. All that matters is you do not miss payments or go over your limit. People who act like utilisation is a massive deal are talking nonsense. And people who pretend those numbers on your credit score are all that matters are also talking nonsense. Each lender will have their own criteria and much of the time that has almost nothing to do with credit agencies.

 

[ZackieChan]

If you don't want to pay interest then don't borrow money. If your aim when borrowing money is to avoid interest then you are doing it very wrong. Your aim should be to pay as much interest as possible every month. This is how you become a profitable customer.

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You seem to be missing the fact that credit card companies make money every time you purchase something with their card. There's no need to pay interest.

 

[Cow]

You seem to be missing the fact that credit card companies make money every time you purchase something with their card. There's no need to pay interest.

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It doesn't change the fact that a customer paying interest is a far more profitable and valued customer.

 

[BladeoftheImmortal]

Rob some banks

 

[Spawnsniper]

There was this gaf user a while back that sent me a message on there showing me how to legally "hack" the cc system by getting free points and cash back by paying in full monthly but using cc to pay other cc.. it was great advice but I dont think I have that PM anymore.

 

[DriftingSpirit]

Make sure not to miss payments. I missed the first few on my student loans and.....yeah.

 

[TaterTots]

My gf didn't have any credit a year ago. She got one of those entry level credit cards with a $250 limit. She just got her gas on it every week and paid it off in full each month. Now one year later her credit score is 700.

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This is the kind of result I am looking for.

 

[Trup1aya]

The pawn shop comparison is not a good one because you are not looking to build a relationship with a scummy pawn shop. When building a relationship with a lender, you want to pay them as much interest as you can to keep them interested. Lenders hate it when you pay off in full every month and start avoiding interest over long periods of time. A customer who pays money with interest is far more valuable than these crazy lunatics who meme the lender and stick to 10% of their limit. You want to be a good customer in the long term then pay interest.

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Lol your goal isn't to be valuable to them. Your goal is to put yourself in the best financial position possible.

No one who pays their balance suffers adverse any adverse effects. Lenders won't turn you away for it. Instead, more lenders become more interested in lending you larger amounts of money. In contrast, the effects of paying a lot of interest is that you end up with less money at the end of the day. That's it.

Your argument is basically that a customer should strive to have less money at the end of the day because banks will be happy to make more profit from you. If you think your goal as a borrower is to make the bank a profit then you have no business giving financial advice.

I hope you are trolling. There's ZERO added benefit to giving banks extra money. You can actually MAKE MONEY by paying your balance, all while maintaining good credit, a high credit line, and a "good relationship" with lenders.

What is the value of "keeping lenders interested" by paying interest? Have you ever heard of a bank losing interest and closing an account because the borrower payed too quickly? Lol this is ridiculous! Credit card companies make $ everytime you swipe a card. As long as you swipe, they are thrilled, interest or not.

It doesn't change the fact that a customer paying interest is a far more profitable and valued customer.

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I'm sure banks love having customers who will happily throw their money away. But there's 0 personal benefit in aiming to make your bank extra profit. You'll have a lower credit score, a lower credit limit, and overall, less money then a guy who pays their balance in full. But hey, they'll "value you" more so i guys it balances out /s

 

[Antrax]

You want to be a good customer in the long term then pay interest.

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I don't want to be a good customer in the long term. I don't give a shit about being a good customer at all. I want their money at as close to zero interest as possible. And you do that with a high credit score.

I am just saying that using 10% of your limit and paying off in full every month is nonsense. It will build credit, but it is not the only way. You absolutely can use you cards as normal with like 80% utilisation, not pay back in full and still build credit.

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Sure. The only difference is the latter person is a sucker who increased their credit by giving away money they didn't have to for the same credit increase.*

*it's actually worse than the former credit increase

 

[BLEEN]

There was this gaf user a while back that sent me a message on there showing me how to legally "hack" the cc system by getting free points and cash back by paying in full monthly but using cc to pay other cc.. it was great advice but I dont think I have that PM anymore.

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Find the links for me! Gonna do some research on me own as well. I live for schemes.

 

[Trup1aya]

Find the links for me! Gonna do some research on me own as well. I live for schemes.

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I don't have any links, but basically you can get credit cards that offer 1-3% cash back on all purchases, 0% APR for 1-2 years and $0 transfer fees.

So if you can essentially use a card interest free and make money, then transfer your balance to another, similar card to keep avoiding interest payments. Rinse and repeat.

 

[BLEEN]

I don't have any links, but basically you can get credit cards that offer 1-3% cash back on all purchases, 0% APR for 1-2 years and $0 transfer fees.

So if you can essentially use a card interest free and make money, then transfer your balance to another, similar card to keep avoiding interest payments. Rinse and repeat.

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Genius

 

[Trup1aya]

Genius

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Yeah there's a bunch of silly stuff you can do.

Like if you are nearing the end of your 0% APR period, but still have a balance, you can transfer more than you actually owe to card B.

So you'll have a negative balance on Card A, which will allow you to use it w/o making payments until you break even again. Meanwhile, you're can make static monthly payments on card B because it's 0 interest and you aren't actively increasing the balance.

All this shit can go shit on you in a hurry if you don't stay within your budget at all times. So Definately do your own research and have a plan.