If you need to build your credit (or rebuild it for that matter), you could follow the old-fashioned ways of simply paying your bills on time, taking out a few debt obligations (e.g. loans), and accessing your credit (e.g. credit cards). Before too long, you will see an increase in your credit score, an increase that will continue to build so long as you continue your good financial practices. However, there is an easier and quicker way – build your credit strategically. In other words, do things specifically toward the idea of raising your credit score:

1. JOIN A CLUB: One of the easiest, and most overlooked, ways to build your credit is to join a club, such as a book of the month club (e.g. GiftLit), a CD club (e.g. Columbia House), or any other “of the month” club. These clubs report to credit agencies monthly and are a great way to build your credit. You can even start to build a child’s credit by putting the subscription in his name.

2. OPEN A CREDIT CARD: Next, make sure that you open a credit card. You have to use the credit that you have in order to demonstrate you can do so responsibly. As such, charge something every month, such as groceries, or use the card to pay a recurring bill, like your mobile phone bill, and pay it off when the statement comes. This way, when you seek credit, you have a good track record (which is really what a credit score is anyway).

3. GO NATIONAL: Get a credit card from a national credit card issuer (e.g. Bank of America), even though their rates may not be as good as some other credit card issuers. Once your credit is established, they will be able to afford to offer you a better APR than their competitors.

4. TAKE A LOAN, ANY LOAN: You should also consider getting a loan; having a formal loan is a great way to build your credit as loans are weighted higher than credit cards, and your credit score increases even higher once the loan is paid for. If your credit is in really bad shape, start with a microloan (one under $1,000) and set the payment term for six months to one year; by the time your loan is paid off, your credit will have increased appreciably.

5. GET FINANCING: Lastly, get financing. When you take advantage of financing offers, such as “no payments for 90 days” or “buy this computer for $50 per month,” you are also buying into a system that reports your payments to credit agencies more frequently. While many of these offers have extremely high interest rates, if you use the service for just a few months and then pay it off, you can enjoy all the credit-building benefits with little (or no) cost to you.

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