A Quick Guide To Building Credit Fast

Building credit fast is actually much simpler than you would think. In fact you don’t even need to apply for credit to build your credit history quickly. This method will blow you away.

Before I go any further in this article I need to let you know there are some risks associated with this method. I’ll cover the risks later but I am telling you this up front so that you read this article in full.

The best way to build credit in the easiest way possible is by piggy backing off of a friend or family member’s credit.

All your friend or family member needs to do is add you to any of their open credit accounts. This could be credit cards, car loans, personal loans, lines of credit, etc. The more they can add you to the more instant credit history you will get.

This method instantly builds credit fast because you are getting the credit history of every credit account you get added to. Awesome right?

It is very important that they add you to these loans as a joint account holder. If they only add you as an authorized user it is a waste of time for both you and them. It will not do anything for you.

To add you to their accounts they will need you name, address, phone, and social security number. From there they just call up the creditor and let the creditor know that they want to add you to the account.

That’s It! Building Credit Fast Is Pretty Simple Right?

There are some major pitfalls in this method of building credit fast.

First you need know the credit history of any account you will be added to. You don’t want to be added to an account that has had multiple late payments or is currently late or even in default. It would be a good idea for them to get a copy of their credit report so that you can see the payment history.

Second you need to be aware of the fact that if you are added as a joint account holder you are now liable for the amount owed. I am not saying that you are no responsible for making the payments. What I am saying is that if the payments are not made, it goes into collection or even if they file bankruptcy the creditor can come after you for the balance.

Third if late payments are made they will be reflected on your credit report as well. In other word any negative credit information from the account you were added to will be on your credit report.

Finally the balances that are reflected on your credit report from the account you have been added to could affect you qualifying for other loans. Debt to income ratios is what lenders and creditors refer to this as. There are ways around this. All you need to do is show that someone else makes the payments. You will typically need 12 months of cancelled checks to prove that you do not make the payments.