How can I build my credit fast with bad credit?

You can build your credit fast with bad credit by staying on top of key monthly bills, lowering your debt, and implementing strategies to decrease your credit utilization rate. But the first step to quickly improving your credit is to apply for a credit card if you don’t already have one.

A credit card is the best credit building tool available because it will relay account information to the major credit bureaus each month, giving you the opportunity to build credit by paying your bill on time every month or just maintaining a $0 balance without making purchases with the card. There are other options, though, including taking out and paying a loan, becoming an authorized user on somebody else’s account, or making rent payments (in some cases).

You should also try WalletHub’s free credit score simulator early in the process. You’ll be able to see how different actions will affect your credit score and when you can expect the changes to occur. Below, you can find a breakdown of the actions you should take for the best results.

6 Ways to Build Credit Fast With Bad Credit

1. Ask your bank for a higher credit limit. Your credit utilization rate, which is the amount of credit you use out of your total credit limit, is an important factor in determining your credit score. If you get approved for a higher credit limit, your utilization will drop and help improve your score. Most credit card issuers will do a hard inquiry when you request your increase, though, which can lower your score slightly in the short term.
2. Pay down existing debts. The total amount of debt you owe factors into your credit score, so a decrease in debt should increase your score. Additionally, payments will add positive information to your credit report and improve your credit utilization rate.
3. Pay your bills on time. Paying your credit cards on time and in full can save you money and build your credit over time. However, late credit card payments can hurt your credit score and increase your monthly costs. A late fee could be tacked onto your payment, and if you are carrying a balance on your card, the regular APR may go up as a result of late payments.
4. Add another credit card account. Using credit cards responsibly is one of the best ways to build credit because it consistently adds positive information to your credit report, which is the basis for your credit score. Adding another credit card increases the positive information going into your credit report each month, assuming you can pay the monthly bills on time. Your credit score may dip a bit initially due to the required credit pull, but the influx of positive information from a new account managed responsibly should quickly make up for that loss.
5. Become an authorized user on someone else’s account. One way to add another line of credit that will relay positive information to your credit reports each month is to become an authorized user on someone else’s account. Joining a partner’s or family member’s account gives you access to credit, and as long as the primary cardholder is responsible, it can improve your bad credit.
6. Keep tabs on your credit report. If you properly monitor your credit report, you may notice an occasional error. Some types of errors, like a missed payment you actually made, can bring your credit score down. If you see a mistake on your report, you have the right to dispute the error, and if your claim is verified, your report will be corrected and your score could improve.

Ultimately, while you can build your credit faster by concentrating on making payments and reducing your debt, the key factors in improving your credit are time and patience. You can track your progress by signing up for a free WalletHub account, which will get you daily credit score updates and personalized advice, among other benefits.