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Six Proven Methods to Increase Your Credit Score

To build a robust credit score, you need to implement good strategies in terms of your accounts, spending habits, and payments.

If your credit score is low, it can be difficult for you to get loans. Many employees do not even hire new people without getting a full report of their credit history. If it is less-than-ideal, it can become problematic for those looking for jobs. So, it is important to have a plan in place to boost your credit score and keep it at an optimal level.

Consider these six methods to increase your credit score.

Timely Payments

To boost your credit score, you need to be current with your loan payments. Timely payments account for a big chunk of your credit score. Often, credit bureaus accord it the most significance when determining your credit score. So, ensure that you do not miss your credit card and other loan installment payments.

Timely payment on your loans can be one of the quickest ways to increase credit score.

Tradeline Purchases

The quickest way to increase credit score is to purchase a tradeline or two from authentic credit repair companies.

Tradelines are accounts that show up on your credit reports. If you become an authorized user on a credit card ( improvemycreditfitness.com/adding authorized-user-to-credit-card ) with good payment history and balance then its history will also reflect on your credit reports. So, you will also begin to reap the benefits of the good credit history of your new tradeline.

Many people aim to become authorized users on a family member’s credit card provided the account is solid in terms of its credit history. But the problem with such arrangements is that if that person defaults on a payment or accrues bad credit on the account, it will reflect on your score as well. But if you purchase tradelines from genuine credit repair companies then you can ensure that you won’t have to face such risks.

Low Credit Card Balances

It is important to maintain good balances on credit cards to have a good credit history. Such a habit will establish you as a responsible borrower. It is best to pay the credit card bills in full rather than continue to incur interest on the remaining amount after you pay the minimum amount due on your bills.

The lower your debt on the credit card, the better it is for your credit score. It is fine to not pay the full amount due on the bill every now and then. During emergencies, you might even need to skip on it. But ensure that it doesn’t become a regular thing. If you continue to keep low balances on your credit cards, in time your credit score will improve and will continue to increase with every billing cycle.

Active Accounts

Often, people tend to close their accounts after years of use if they don’t need it anymore. But if you have an account with a good credit history, closing it would mean losing out on a good chunk of robust numbers on your credit score.

Close your accounts that accrue a fee after some time once you have other accounts active. But if you can afford to keep even secured accounts active and open for a long time, it can go a long way to boost your credit score. It is best to not close your free accounts at all if you have been using them for a long time or if they have a good credit history.

Multiple Accounts

To increase your credit score, it is important to not rely on one account only. It is best to maintain a mix of different accounts in order to build a solid credit history.

Making timely payments on more than one account is better to establish your credibility as a borrower than just one.

New Account Openings with Intervals

Yes, multiple accounts can help to increase your credit score. But opening them all within a short span of time can hurt your case.

The reason for it is that every new type of credit inquiry diminishes your credit score. So, it is best to spread out applying for different types of loans by six months at least.

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