5 Reliable Tips to Boost Your Credit Score FAST!
You’re here because you’re tired of operating on a poor to fair credit score. Your score is making it harder to get approved for a loan and, hey, it’s even causing your interest rates to pop off like a bottle rocket.
Help is at hand!
Today, we’re going to cover a few tips to help possibly increase your credit score by 100 points or more. You could see some very encouraging results in a matter of weeks once you start using the 5 credit-boosting strategies below.
Keep scrolling!
1. Pay Off Your Credit Balance as Often as Possible
The baseline recommendation is to always pay your credit card balance in full before the end of your billing cycle. This keeps your profile in good standing when your credit card issuer reports your usage to various bureaus, helping you stack up points that much quicker.
But we’ll do you one better. Instead of setting up a once-a-month payment, try paying off your balance as often as possible. This tactic protects you from (totally avoidable) interest rates which are calculated based on your daily credit balance.
2. Watch Out For Errors in Your Credit Report – And Dispute Them!
We can’t stress this one enough. It’s important to be vigilant with your credit report and dispute any errors therein. Three of the most common credit report errors are:
- Inaccurate payment records
- Being wrongly linked to a loan or credit card
- Incorrect names and/or addresses
All of the above could lead to red marks or ‘derogatory’ marks on your credit report. These are essentially red flags that convey a risky payment history to lenders. We recommend getting your credit report done at least once a year to protect your credit health.
3. Request an Increase in Your Credit Limit
Something most people don’t know – When calculating your credit score, bureaus look at what’s called a Credit Utilization Rate (CUR). This is a metric that shows the percentage of credit you’re using. For instance, if you have a credit limit of $5,000 and you use $2,000 every month, your CUR is effectively 40%.
It’s good practice to keep your CUR to 30% or lower in order to maintain your credit health. One of the easiest ways to do this is to have your credit limit increased, especially if you’ve recently received a salary bump and anticipate spending more every month.
4. Steer Clear of Late Bill Payments
This one’s a given but we cannot stress it enough – Keep up with your bill payments. The remaining tips in this article are redundant if you do not follow a timely payment schedule. Remember, late payments remain on your credit report for as many as seven years!
Even if you cannot make your payments that month, consider contacting your credit provider and setting up an alternative payment plan before they report the delinquent payments to bureaus. Delinquent marks on your report can seriously tank your score and are so much harder to recover from.
5. Think About a Debt Consolidation Loan
One of the smartest ways to keep up with outstanding debt is to apply for a debt consolidation loan. You may be eligible to merge multiple credit card and loan payments into one affordable payment with a lower interest rate! This simple move will make it so much easier to keep up with your payments and never miss a beat.
The result? A debt consolidation loan could positively impact your CUR – Credit Utilization Rate – and, by default, your credit score!
And with that, you’re all set to start rebuilding your credit! Don’t be dismayed if you don’t see instant results.
Boosting your credit takes a little time and patience. That said, you’d be surprised at how effective these 5 strategies are once you start using them regularly. Start today and soon enough you’ll see big rewards.
We wish you the very best!
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