What's the fastest way to build good credit?

Follow this 5 steps guide
http://www.apply-best-credit-card.com/5-steps-to-improve-credit/
Correct blatant mistakes. Your credit score is only as good as what shows up in your credit report. Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan. Changing a mistake on your report - such as a payment that is wrongly labeled as late â€” can take 30 days to three months, sometimes longer.

Pay your bills on time. This is always a good practice, and itâ€™s especially critical that you make prompt payments close to the time you need a loan. Thatâ€™s because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.

Reduce your credit card balances. A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, itâ€™s good to keep your balances at or below 25 percent of your credit card limit, said Jeanne Kelly, founder of The Kelly Group in Brookfield, Conn., which helps clients improve their credit scores.

Pay off debt rather than moving it around. Since the ratio of your credit card balance to your credit limit is key, closing out an account and transferring the balance simply means you increase that ratio, which is likely to lower your score. In other words, say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit. Your total credit limit is $8,000, of which your total balance ($2,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50 percent of that limit.

Donâ€™t close unused credit card accounts near loan time. If you have several credit card accounts but are only using a few of them, youâ€™ll only raise your balance-to-limit ratio if you close the unused ones. You also shouldnâ€™t open new accounts when applying for a loan if possible. If you have a short credit history or very few accounts, opening a new credit line may lower your score since you donâ€™t have a proven track record, said Jan Davis, an executive vice president at TransUnion. Whatâ€™s more, a new account will lower the average age of your accounts, another factor in your FICO score.

Credit scores are based on the following factors;

1. Payment history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio 30%

To have the best credit score and profile people need 3 credit card accounts (revolving) with balances below 30% of their limits and 2 cars, boats, homes, computers, furniture or personal accounts (installment) all with good long pay history's.

The fastest way to build score is with 2 credit cards using them for every day thing, never exceeding 30% of your limits and paying them off in full before the due dates.

Add a small personal loan for at least $1,500.00 for 12 months and pay as agreed and you will have a great score in 12 months.

To raise credit score

1. Always pay on time or ahead of time.
2. maintain low balances on credit cards
3.To boost your score: Don't charge anything for at least 60 days before applying for a loan
4. keep your total potential debt to earnings load low - If you have a card with a $15000 credit line, you may ask them to reduce it to something more realistic, like $5000.
5. You should have a recent history of both installment or term (Car or house loans) and revolving credit.
6.To boost your score: Don't close unused accounts when you transfer debt.
7.To boost your score: Consider opening another credit-card account or two, or taking out a car loan or small bank loan.

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http://www.bestcreditrates.net

Save you money, use very little credit at all. Anything you do use, pay off immediatelly. Dont obsess with credit, obsess with wealth.

Hi!

The steps below can help you in building a good credit:

* Pay your bills on time. Delinquent payments can have a major negative impact on your score and the longer you pay your bills on time, the better your score. For example, someone with an average credit rating of 707 can raise their score by as much as 20 points by paying all their bills on time for one month.

* Keep balances low on credit cards. High outstanding debt can affect your score. Maxing out your credit cards could lower your average score by as much as 70 points.

* Don't open a number of new credit cards that you don't need. New accounts will lower your average account age, which could actually lower your score by up to 10 points.

* Have credit cards - but manage them responsibly. In general, having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.

* Closing an account doesn't make it go away. A closed account will still show up on your credit report and may be factored into the score.

I hope it help yah!

Read this article, they list several tips on recommendations on building good credit, http://www.monitorbankrates.com/how-to-build-maintain-and-repair-your-credit

Pay your credit card bills on time and in full; don't spend too much; use debit card for your purchases; when you don't owe money to anybody you will build good credit.

Pay your bills on time. There is no magic formula....as credit is extended to you, pay your bills on time, every time.

I built my credit really fast when i was young by getting few credit cards. If you spend what you can afford only and pay the cards on time for a year or so, you will have a good credit by the end. You may be eligible to apply for loans after that. Check out some articles on building credit at the site below. They'll also help you find good credit card for starting out.

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