Are you planning for the future and looking for easy ways to increase your credit score? If you’ve ever thought about buying a house, a car or even getting a credit card, it’s imperative to have a good credit score. So whether you have bad credit or no credit, here are 7 simple ways to increase your credit score so that the next time you’re in the market for a car or big ticket item, you can proudly show off you’re A+ credit score!
1. Get Some Plastic
Who would’ve thought that getting a credit card is a way to increase your credit score?! Many people think that you should avoid credit cards like the plague but that’s simply not the case. You have to obtain credit to have a credit history so if you’re just starting out, apply for a credit with low interest and no annual fee to start building your credit. If you’re trying to increase your score, having and using a credit card will help you raise your score as long as you use it responsibly!
2. Practice Restraint
So I just got finished saying you should get and use a credit card as a way to increase your credit score but don’t go overboard! I know many department stores offer discounts for applying for their store cards and it’s tempting, but opening accounts you don’t need is not good. If you have new accounts, it lowers the average account age making it appear like you have a bunch of new accounts which can lower your total score.
3. Get Low
Another one of the easy ways to increase your credit score is to make periodic payments and not just the minimum or one big payment at the end of the month. Check with your credit card company to see if there’s a limit on the number of times you can pay a month and make small payments throughout the month. The lower your credit card balance is, the better!
4. Use Sparingly
Using your credit cards lightly is one of the main steps in how to repair your credit. Just because you have plastic doesn’t mean you should solely depend on them! I know it’s easy to reach for your card when funds are low or you really want something but making big purchases on your card is a negative! Credit bureaus report your previous month’s balance so if you made a big purchase, it can hurt your credit score.
5. Pay It Forward
Another step in how to repair your credit is to pay down or pay off debts. This is a good rule regardless of your credit status as credit bureaus want to see a large gap between your debt and credit limit. So aim to make a significant dent in your debt. Get in the habit of having low balances and paying your bill on time every month and you’ll be on the fast track to good credit!
6. Accentuate the Negative
Checking your credit report and disputing errors and negatives is a great way to increase your credit score. You’re entitled to one free annual credit report from each of the 3 main credit bureaus at annualcreditreport.com so be sure you request your copy and check for any mistakes. Report those errors to the credit bureau so that you’re not held responsible for something that’s not yours!
7. Hush Money
The last approach in the easy ways to increase your credit score is to make payment arrangements with collection companies. If you have an account in collections, many companies are willing to remove the debit from your credit report if you pay off what you owe them. Talk to the collection agency to see what you can work out, it might work out in your favor!
Having bad credit is the pits but there are many ways you can get back on the right track! Use these easy ways to increase your credit and start rebuilding your credit right away! Everyone makes mistakes and it’s so easy to go nuts with credit cards so cut yourself some slack and start spending wisely!
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