Credit scores and how they get computed are things the overall general public probably doesn’t know or understand.
However, the things that contribute to building or bringing down the score is no secret.
Most people have a pretty good idea of what factors influence their credit score negatively. So what about when you want to raise your credit score fast?
The advantages of having a solid ass credit score can financially make life a lot easier. Increasing your credit score will also open the door to getting cars, a home or an emergency loan. (Don’t abuse it, though!)
Even if your credit score isn’t a complete disaster. you can still learn how to improve your credit score drastically.
So without further ado here are 13 foolproof things you can do to maintain or increase your credit score to pure perfection!
1. Pay Your Bills
Paying your bills well within the payment deadline is the most obvious and important thing you could do to boost your credit score.
When you make payments late or beyond the due date, the action gets registered on your credit report as negative information. Thereby bringing your credit score down fast.
If you cannot make the payments in full, make sure you at least pay the minimum amount due. Call and make payment arrangements with your creditors.
Most will be willing to work out a payment plan with you or extend out your due dates.
2. Keep Unused Accounts
The period you’ve been associated with a creditor influences your credit score.
If you have a long-term, positive history with a creditor(s), you would be rewarded for the same even if your account is not in use or inactive.
Therefore, refrain from closing unused and older accounts. Although make sure you don’t go overboard by opening multiple accounts and abandoning them thereafter.
Doing so would only have the opposite effect.
3. Don’t Exhaust Your Credit Limits
Having a credit card and making payments on the card impact your credit score. Another thing that can have an effect on your score is your card balance.
If you have used more than 30 to 35 percent of your total available limit on the card, you may end up hurting your score, even if the payments have been coming through promptly.
For example, if your credit card limit is $2,000, your usage on the card shouldn’t have exceeded $700.
Your credit history should exhibit that your card balance has been on the decline, which is basically a sign of responsible and proper card usage.
4. Don’t Buy Shit
Having a line of credit sometimes makes it tempting for us to buy shit we really don’t need. (Or use for that matter.)
Fresh credit card purchases would increase your credit usage rate, which is something you don’t want to do when your credit score is not ideal.
Instead, make purchases using cash so that nothing reflects on your credit report.
Even better, refrain from buying things that you absolutely do not need. It might be hard for the shopaholic out there, but it’s absolutely necessary to raise your credit score.
5. Make Additional Payments
Making an additional payment or two will help bump up your credit score quickly.
In other words, make a payment toward your credit card debt once a week rather than a month. Keep in mind these don’t have to be massive payments. Anything additional you can make towards your balance will help substantially.
This goes without mentioning that any extra sum you pay on your mortgage, personal loans, credit cards, etc. gets added to your principal too.
Making your credit score stronger and higher before you know it!
6. Request Credit Limit Increase
Putting in a request to increase your available limit on your card is a rather unconventional way to positively influence your credit score.
The logic behind this goes back to the earlier technique wherein it was recommended to not use more than 35 percent of the limit on the card.
Increasing the limit on card works in a similar way too but from the opposite side. For example, if your card limit is $3,000 and you have exhausted $1,500 of it, you are technically using 50 percent of the card’s limit.
However, if you managed to push the limit on the card to $5,000, your usage percentage would then be 30 percent, which is below the prescribed upper limit.
7. Think Before You Borrow
Not adding a fresh credit or loan account and letting existing accounts to grow older are effective ploys to push your credit score up.
If you absolutely need a loan, go ahead and apply for one. But if you can manage without adding one more debt on your credit profile, then don’t do it.
Limiting credit applications is seen as a piece of positive data on your credit report. So just think “Do I really need to take out a loan or line of credit for this?”
In most cases, you will find it’s best to just save up and buy it when you can afford to pay for it with cash.
8. Mix Things Up
Having different types of installment loans (auto, mortgage, etc.) is way better compared to having just one kind of credit or loan accounts.
The logic behind this is lenders would like to see how responsibly you manage different forms of credit, and not just a particular kind or two.
If you were to apply for a car loan for the first time, you would come across a lot riskier in the eyes of the lender compared to someone who has drawn car loans in the past.
This is despite your track record with other forms of loans, such as credit card debt, being solid.
9. Quick Loans
If your credit score is REALLY bad and you cannot possibly think of any other way to get it back on track, consider getting a quick loan.
Quick loans are basically small loan amounts, which could be in the $200 to $1,000 range and come with a relatively short repayment period.
If you manage to get such loans and make prompt payments on them, it will help boost your credit score.
Listen, only take a short term or quick loan only if you truly need it and can pay the money back in time.
Otherwise, you may end up exacerbating your poor credit situation, and we don’t want that, Babe!
10. Consider Debt Consolidation
A debt consolidation plan could cause a temporary credit score dip. This is totally normal when you first begin a debt consolidation plan.
The good news is, if you continue making payments on time, your credit score will start to rise. Paying a little over the monthly amount due will help your credit score as well.
You would also be getting rid of the debt you carried through all this long. Finding the right debt consolidation company can be difficult.
Make sure you are using repeatable debt consolidation agencies with reviews and decent rates.
11. Have Patience
The aforementioned suggestions, upon implementation, would take time to show results. Do not expect your credit score to improve overnight or over a few days.
The key to increasing your credit score is done by incorporating solid credit habits and behaviors. Building decent credit doesn’t take a long time, but building excellent credit does.
This explains why most people with excellent credit scores are usually in their 50s and 60s.
Fret not, my pretty! You won’t need to wait until you’re close to retirement age to have a popping credit score. Just start to manage your debts now, and practice strong budgeting.
12. Dispute It
To put it frankly. Dispute that shit. This is if there is something on your credit report that is lowering your score.
Of course, if you owe the debt and can pay it – do that. But if you can’t pay the debt or if you are not sure if it’s yours dispute it!
Some creditors do a shitty job at keeping records so if they can’t prove it’s your debt it will be removed. This will significantly raise your credit score.
This doesn’t guarantee your debt will be erased. The dispute could be thrown out, but it’s worth a try.
13. Get Professional Assistance
If your monthly expenses or credit situation is overwhelming, it may be best to seek professional assistance.
Signs of that could be that you are the verge of bankruptcy, or are living paycheck to paycheck. An example of professional assistance would be credit counselors or credit rebuilding agencies.
They can help you draft a budget, set up your debt management plan, and organize your finances.
Make sure you find a certified and reputable credit counselor, there is a ton of scammers out there. So make sure you do your research.
You’re On Your Way!
The road to great credit can be a tedious one, but with these killer tips, you’re going to make major waves!