7 Easy Ways to Improve Your Credit Score
May 5, 2020 by
Multiple factors go into your Credit Score, Here are helpful tips we've put together.
Pay every bill on time
Often times lenders will look at alternative forms of data when seeing if you’re creditworthy. Examples of this are paying your rent, cable TV and cellphone on time payments.
Pay down your credit cards as soon as you can
Make small payments throughout the month to keep your credit card balances down. If you see the charge posted, transfer money over to start to pay off your credit card so you don’t forget / miss a deadline. Getting in the habit of making multiple payments within a month builds your called credit utilization, which has a big effect on scores.
Dispute credit report errors
Everyone gets a free report every 12 months from each of the three major credit bureaus: Equifax, Experian and TransUnion. Use the AnnualCreditReport.com to your advantage to request those reports, check them for mistakes and dispute the payments marked late when you paid on time.
Ask for a higher credit limit
In most cases, card issuers don’t automatically increase your credit limit, which means that most of the time you must be proactive and explain why you deserve an increase to your credit limit. In some instances, if you’re a responsible spender and routinely pay off your balance on time, the card issuer might automatically raise your credit limit even if you didn’t ask for an increase.
Become an authorized user
To make you an authorized user, the primary account holder simply adds your name to their credit card account, giving you authorization to use it. You’ll have a chance to build your credit, while mom and dad may rack up points or cash back on every dollar you spend.
Keep credit cards open
Keeping unused credit cards open—as long as they're not costing you money in annual fees—is a smart strategy, because closing an account may increase your credit utilization ratio. Owing the same amount but having fewer open accounts may lower your credit scores