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Having bad credit makes big investments, such as buying a house, much harder and more discouraging. According to the credit score model developed by Fair Isaac Corporation (FICO), a bad credit score is defined as one below 580. This can lead to loan rejections and other extra hassles that can be altogether frustrating.
But bad credit doesn’t have to follow you forever; once you learn how to fix bad credit, you can take small steps to turn it around. This article discusses credit rebuilding and different ways of improving credit score fast.
Before anything, it’s important to be aware of the exact state of your credit by looking at your credit report. Review every detail to ensure it’s an accurate report.
Are all of the payments made by you? Are they all made on the right dates? If you find anything wrong or inconsistent, report this immediately.
Aside from ensuring accuracy, take note of all your purchases and payments to maintain a clear record. Be aware of any subscriptions you’ve forgotten to cancel or other purchases that may be accumulating and harming your credit rebuilding. Once you recognize these expenses, you can start allocating them to other monthly payments instead.
2. Make on-time payments
Late payments hurt your credit. To avoid them, assess why you struggle to make them on time in the first place. If you frequently forget when a payment is due, consider putting your deadlines on a calendar or using the autopay function to send in your payments automatically.
In other cases, not having enough money by the deadline causes late payments. Create a monthly budget that accounts for your fixed monthly payments first, so that you can cut back on variable expenses such as groceries and shopping. As you continue to make more on-time payments, you start improving your credit score fast.
3. Pay small loans and debt
So, what are the other solutions to your query of how to fix bad credit? Prove to lenders that you can make timely payments with small loans. It may seem scary to take on more debt when you already have bad credit, but this can help with credit rebuilding.
Taking up something small and affordable, like a personal loan for your monthly bill that you can quickly pay for, can slowly rebuild a lender’s trust in you. This will also help develop good payment habits.
Small loans do look at your credit score, so you’ll have to take time to find a lender that has lower credit requirements.
4. Become an authorized user
Becoming an authorized user on a family or trusted friend’s account is one of the most helpful ways for improving credit score fast. This gives you a physical credit card and allows you to make purchases on their account. Their credit limit and payment history also show up on your credit report, which can improve your credit score.
While it’s the primary card owner’s responsibility to pay for the charges on the card, contributing your part is good practice for making payments and managing your budget. Make sure to communicate whether you will contribute to payments and, if so, how and when you will make the transfer to avoid conflicts with the primary owner.
5. Maintain good payment habits
Once your credit score improves, you need to adjust your payment habits moving forward. Everyone is just a few late payments or bad debts away from reverting to a poor credit score and having to start from scratch.
Make it a habit to pay on time and prioritize setting aside money for monthly payments. If you miss a payment, hold yourself accountable by skipping things like shopping or eating out until you’re back on track. Consistently practicing these habits can help you complete your credit rebuilding journey in just a matter of time.
Trusted credit rebuilding advice and tailored loans—that’s what you can expect with Nclusive Financial. With our assistance, your next home, investment, or loan is within reach.
Key Takeaways
- Bad credit, which is generally a FICO score of below 580, can hold you back from loans and investments. It’s important to assess your credit report, check for inaccuracies and unnecessary payments, and learn how to fix bad credit.
- Credit rebuilding begins by paying off small loans on time.
- Become an authorized user on another person’s card so that their account can influence your credit report.
References
- Luthi, B. (n.d.). How to Improve Your Credit Score. Experian. https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/improve-credit-score/.
- Mastroeni, T. (2024, April 30). How to Improve Your Credit Score Fast: 11 Ways to Build Credit Quickly. LendingTree. https://www.lendingtree.com/credit-repair/how-to-improve-your-credit-score/.
- McGurran, B. (n.d.). How to “Fix” a Bad Credit Score. Experian. https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/how-to-fix-a-bad-credit-score/#:~:text=Quick%20Answer,cost%20you%20more%20in%20interest
- McGurran, B. (2025, February 21). What Is an Authorized User on a Credit Card? Experian. https://www.experian.com/blogs/ask-experian/what-is-credit-card-authorized-user/.
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