Attempting to increase your credit score seems like the end of the world to many people. If you don’t have a history of making on time payments or have been overextending your credit limits, it can seem far-fetched. However, these following five tips can bring your credit score up fast.
Review Your Report and Dispute Mistakes
After ordering your credit report, check for accounts in collections first, as this could be an error. In case you weren’t aware, some accounts are sold off to other collection agencies after some time. So this could have one debt showing up twice on your report. For any errors you do see, dispute them immediately. You can do so online or via mail with all three bureaus: Equifax, Experian, and Transunion.
Get Rid of the Numerous Small Balances
The more accounts open with an outstanding balance, the more it can bring down your credit score. What you want to do is pay all those small balances off in full, especially if they are under $100 each. If you are unable to pay them all off, consider consolidating each to one credit card, preferably the one with the lowest interest rate. If you have a credit card offer for 0% interest rate on transfer balances, this will work even better.
Ask If Your Credit Line Can Be Increased
If your debt to credit ratio is too high, this also has a negative effect on your credit report. So a simple trick is to increase your credit line to make your ratio lower. Once it’s increased, your credit card will not look as though it’s maxed out. Sometimes a creditor will do this automatically, perhaps after your anniversary with them. Other times you just place a phone call and request it.
Get Added as an Authorized User
Another trick to bring up your credit score instantly is to be added as an authorized user on someone else’s credit card. Of course, you want them to have a good credit rapport, meaning they are paying that bill on time. You’ll need to ask a close friend or relative, and they may seem hesitant to do so. However, you can tell them you aren’t requesting the use of the card. So they don’t need to order one and be worried about you spending their money.
Use One Credit Card Frequently
A final tip to increase your credit score is to use one credit card frequently. For all your monthly expenditures, use this card and pay the balance off in full at the end of the month. This is advised for two reasons:
- In paying this each month, you are creating a positive credit history that is reported monthly.
- This prevents your card from being inactive of which some creditors will cancel your account. If this happens, it shortens your credit history which has a negative impact on your credit.
The above five tips will gradually increase your credit score and some additional tips can be read in this article. It won’t jump up overnight, but it will be a fast process.