Good credit can open up the doors for all sorts of things. It can allow you to buy your dream house, rent the perfect apartment or even buy that sports car that you’ve been wanting.
If your credit score isn’t as great as you’d like it to be, there are some ways that you can improve it that don’t take a lot of time. Here are the best and easiest ways to improve your credit score quickly.
Lower The Utilization On Your Credit Cards
If you are looking for a quick way to improve your score, you may need to lower your credit utilization. Many people don’t realize that the utilization on their credit cards is 30% of their overall score. What this means is that lowering their utilization is a quick way to raise it. It’s best to aim for a utilization of less than 10%. For example, if your credit limit is only $100, you want to leave a balance of less than $10 on your card.
Don’t Pay Off Cards Completely
You don’t want to pay off your cards completely as it is important to show that you are still using your cards. Use your cards as much as you want, but you do need to pay them down before the statement date. The amount of money you owe that’s reported on your statement is the same amount of money that will be reported to the credit bureaus.
Ask For Your Credit To Be Increased
If you are looking for a different way to lower your credit utilization and improve your score, you should request a credit limit increase on your cards. This process is fairly quick, and most credit card companies will give you an answer right away. In fact, you may be able to request an increase online. It won’t hurt your score even if they decline your request. Most companies allow credit increase requests once every six month.
Open Up A New Credit Card
Many individuals are able to improve their credit score just by simply opening up a new credit card. By opening up a new card, it will decrease their overall credit utilization across all of their cards. For those that don’t have great credit and may have a difficult time getting approved for a credit card, they may have success with being approved for a secured credit card. How it works is that they will need to use some of their own money as a deposit that they borrow against. For example, if they have a $200 deposit, then their credit limit will be $200. If they are responsible with their card, some credit card companies may even refund their deposit and give them a standard credit card that is unsecured.
Have Errors Fixed
It actually isn’t all that uncommon for there to be errors on a credit report. Because of this, it’s a good idea to check it at least once a year to make sure that everything on it is accurate. If there are errors on your report, it could be bringing your score down quite a bit. The process to fix these errors usually is quick. There may be things on your credit report such as an incorrect balance or an old account that shouldn’t even be on there. You will need to contact each credit bureau to dispute these items. If they find that your dispute is valid, they will fix each error, and you may see a quick jump to your score.
Become An Authorized User On Someone Else’s Card
If you know someone who has good credit and won’t mind helping you out, you might want to consider asking them to become an authorized user on one of their credit cards. It will allow you to see a quick jump in your credit score. You don’t even need to use their card or access their account to reap the benefits of being an authorized user. Just make sure that this person makes all of their payments on time and they have a low utilization. By becoming an authorized user on someone else’s card, you can reap the benefits of their good credit habits.
Your payment history makes up 35% of your total credit score. Even just one late payment can bring it down drastically. In fact, it can take about two years for your credit score to bounce back after missing a payment.
Make All Of Your Payments On Time
Make sure that you make all of your credit-related payments on time every single month. If you are having trouble remembering when all of your bills are due, you should put them on auto-draft. This will allow these payments to automatically be paid each month, and you won’t have to worry about forgetting to pay them.
Have Different Types Of Accounts
By having a variety of different types of credit accounts that are in good standing, you will demonstrate to others that you know how to manage your credit in a responsible way. This will actually bring up your score. It’s a good idea to have a mix of things like credit cards, car loans and a mortgage. Once you pay off a loan, it can stay on your credit report for 7-10 years. As long as you paid all of your payments on time, it will continue to have a positive impact on your score.
Sign Up For A Loan That Will Build Credit
There are all sorts of credit builder loans available that will offer a quick boost to an individual’s score. How they work is that the individual makes a payment every single month for a certain number of months. These payments go into a CD, and the payments are reported to the credit bureaus. After all of the payments have been satisfied, the individuals will receive the balance of the CD minus any administrative fees that they need to pay. This is a great way for individuals to raise their score as the monthly payments are usually less than $50. They also allow the individual to save some money all while increasing their score at the same time.
Get Negative Items Removed
A lot of people end up not paying a bill and having a charge-off on their credit report. If you have a negative item, you can improve your credit score by paying these items. It’s also a good idea to try to see if they will delete the item off of your credit report once you have paid it. Many companies are now offering this as it entices individuals to pay old debts. By having these negatively items removed, it can greatly improve an individual’s score.
While there are a plethora of credit card offers available to individuals with any credit circumstance. Our extensive team of credit card pros take the time to research and dig deep in each credit card offers. Whether you have good credit, bad credit, no credit, looking for lower rates or saving money. We know offers are worth showing to you.