A high credit score is a powerful asset when getting a TV subscription, buying insurance, apply for a credit card, and taking out a loan in the Beehive State. It is not the only thing that matters, but it says a lot about how well you manage your finances.

A low credit score, on the other hand, is a burden, for it can restrict your ability to purchase. Although it is a cross you need to bear for a long time, there are ways to build your credit fast to buy a new home in Riverton, Utah, or any other big-ticket items. Below are the most effective ones.

Avoid Missed Payments Most, if not all, credit-scoring systems in the United States put a premium on payment history. It can represent up to 35% of your credit score. That means your credit health can go from “very poor” to good quickly if you pay your financial obligations in full on or before due dates.

Normally, only payment histories of revolving lines of credit and installment loans are only taken into consideration. Thanks to fintech innovations, credit bureaus are finding ways to take alternative financial data sets into account. For instance, your utility and telecom payments can now be added to your Experian file, which can improve your FICO score instantly.

Keep Old Accounts Active Another best practice is keeping your oldest credit accounts open even when there is not much activity in them. They help keep the average credit history age high, making you an experienced credit user in the eyes of lenders. When you close an old account, you also lose the payment history, so it can cause a double whammy.

Pursue Debt Consolidation credit scoring

When it comes to debt relief, always choose debt consolidation over debt settlement. The former is about taking out a loan to obtain funds for paying other debts, preferably those with the highest interest rates and balances, while the latter is about negotiating to reduce what you owe with each creditor.

Both forms of debt relief can negatively affect your credit score, but the effects of debt settlement are lasting. It stays in your file for seven years, making it difficult for you to access low-cost credit for the time being. On the contrary, debt consolidation lowers the average age of your credit accounts at best and increases your overall credit utilization at worst.

Debt consolidation, however, can open more doors for fast credit building. It can diversify your credit accounts, giving you a chance to show lenders you can handle different types of credit. With the funds you can obtain through it, you can be less indebted more quickly and bring more positive items to your payment history.

Check Credit Report Regularly Make it a habit to review your credit reports from the major credit bureaus to spot for inaccuracies and correct them ASAP. Any negative item in your file that should not be there can shave off points of your credit score, making you look bad.

Ruining your credit is easier than building it. With little room for error, be more conscious and strategic with your financial decisions to put your credit score on a steady upward trajectory toward perfection in no time.