What is the fastest way to establish a credit score?

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I have a young client with excellent income and job history but zero credit. What is the fastest way to get him a credit score. He has an aunt with a credit card that is willing to make him account holder but what is the turn around on something like that. Would I need to order a rapid rescore or order a whole new report to get his scores?


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It used to be quite easy (in fact, too easy) to establish great scores in a short time by simply adding someone as an authorized user. I had a client with a blank credit report whose mom added him to two accounts, his score was 720 45 days later. Now, however, authorized user accounts are not supposed to influence credit scores, and even if they do, an underwriter will likely not look kindly on a report that only shows authorized user accounts. My advice is for your client to get a secured credit card (or two) while also being added as an authorized user. It will take several months before the payment history on the secured cards will generate credit scores, but at least that way it will be activity your client generates, rather than just “piggybacking” as an authorized user. Hope that helps. Ted

Answered 29 days ago
Ted Rood
1189 6
24 days ago Ted Rood said:
 

It is easier to establish good credit scores if you have both installment and revolving debt. One way several of my clients have helped their scores, given a thin credit history, is by purchasing some small items from furniture stores that offer “6 months same as cash”. As long as they report to the credit bureaus, it’s a good way to get some installment activity on a credit report without having to income qualify or make payments on a car for multiple years.


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I have heard that another way of quickly building credit is to get a loan on a vehicle. Though this would only be feasible if the borrower wants or needs a new car and has the income to pay for it. But it is a way to build credit and prove that they can make regular monthly payments.

Answered 28 days ago

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