How to Build Credit Quickly: A Step-by-Step Guide

Build credit quickly is one of the main concerns of those who have just started their financial life.

Having a high credit score is not a reality for everyone, and as a result, gaining access to loans and cards becomes a challenge.

If you are facing this problem, don’t worry, as there are strategies to solve it, and that’s exactly what we’re going to talk about today, so keep reading!

Why do some people have difficulty building credit quickly?

Have you ever wondered why some people have an easy time getting credit limits, while others are frequently denied?

This does not always happen because of income, after all, there are countless cases of people with the same salary, who receive different opportunities from banks.

The truth is that what really counts in gaining credit is the customer’s profile, that is, the guarantees they offer to the creditor.

These guarantees have to do with the customer’s history in accordance with their financial habits. This helps to understand the chances of paying agreements.

After all, it is not uncommon for people to apply for loans and not be able to pay the installments, which causes losses to the bank.

Therefore, if you are having difficulty building credit quickly, it is likely that your profile does not yet offer security to creditors.

This can occur for several reasons, such as: insufficient history, debt record, many accumulated loans, among others.

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Learn how to build credit quickly

If you are frequently receiving refusals from banks, don’t worry, as this situation is not that difficult to resolve.

The fact is that a good credit profile can be built through good practices that favor the evaluation of banks.

With that in mind, below we’ll look at 5 essential steps to building credit quickly, which even work for those who are negative.

1. Avoid debt

If you want to build credit quickly, you must, first of all, invest in paying off outstanding debts in your name.

This is because there will be no point in increasing your income, or trying agreements with different banks, while you have debts dragging your score down.

Therefore, to begin with, try to negotiate your debts, and pay the agreements responsibly.

This will help you “clean up” your score, which will leave your profile ready for evaluation improvements.

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2. Pay your bills on time 

As important as avoiding debt is ensuring the bank that you are committed to paying installments on the right date.

This is because delays of just a few days may indicate a lack of organization, financial imbalance or income instability.

Therefore, try to pay your bills at least a few days in advance, as this makes it easier to demonstrate to the bank that you have no difficulties in covering the expenses you already have, and therefore, can take on new contracts.

3. Invest in your relationship with the bank to build credit quickly

Just having a clean name is not the secret when approving loans, after all, there are countless cases of highly indebted people who continue to have opportunities with banks.

This is because these customers have a well-developed relationship with the financial institution, so they can obtain personalized agreements.

Therefore, to build credit quickly it is important that you invest in good financial practices, but in addition, it is essential to have a good history with the company in question.

So, open an account and make frequent transactions, as this will help build an internal history that is important for credit granting assessments.

4. Be careful with the amount of loans you apply for

There are those who say that having a lot of loans is a good sign, after all, it indicates that banks trust the customer, but it is important to know that it doesn’t work that way.

We must remember that credit is a modality that makes it possible to purchase goods or finance projects in installments. So, it may indicate that the customer could not make that purchase in cash.

Therefore, requesting too many loans may give the bank the impression that you are facing some type of imbalance in your financial life, as you need too much credit.

Furthermore, each contract registered in your name impacts your credit score, after all, it is an additional installment that you will have to pay with your income, which reduces the “free margin” for your survival.

Therefore, if you want to build credit quickly, remember to request contracts responsibly, in order to help you achieve a good profile.

5. Take care of your credit score

So far we’ve talked a lot about the credit score, which is a score that determines whether or not the customer has a good paying profile.

In general, this score is very important for financial institutions, as it facilitates analysis when granting credit.

Therefore, a good tip for building credit quickly is to be careful with your score, which varies due to issues such as:

• Delayed expenses;
• Debts registered in the name;
• Income variations;
• Account movement;
• Family budget;
• Between others.

So, having a stable financial life is essential to keeping your score high, and thus making it easier to gain credit.

Finally, now that you understand how you can improve your credit ratings, invest in positive practices to build credit quickly and achieve a stable financial life.

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