Do you have bad credit, no credit, or even fair credit, and are trying to figure out how to boost your credit score? Start with these simple tips!
Only 51% of survey respondents feel somewhat knowledgeable about how credit scores are calculated. Unfortunately, many people let small mistakes add up. You might not realize your credit score is tanking until it’s too late.
Whether you have bad credit or no credit, it’s important to learn how to boost your credit score. Inadequate credit could make it difficult for you to apply for a loan or buy a home.
Keep reading to get our best tips on boosting credit scores.
1. Pay Your Bills on Time
Credit card debt has increased by more than 6% in the past year and over 31% in the past five years. Letting your balance carry into the next month can hurt your credit score. If you want to boost your credit score quickly, start by paying your bills on time every month.
Don’t pay the minimum balance. Instead, pay off the ones that have the highest interest first.
It also helps to lower the ones with the highest balances.
Paying your bills on time beyond the minimum balance can help you lower your debt each month, which will improve your credit score.
2. Get Authorized
If you want to learn how to boost your credit score, consider becoming an authorized user on someone else’s credit card.
Once you’re authorized, the credit bureaus will track that card as if you opened the account. It will look like you have a long, responsible history of using credit, even if that history isn’t yours.
Make sure you work with someone you trust who already has a strong credit score.
3. Apply for a Secured Card
If you have a low credit score or no credit score at all, consider getting a secured credit card.
Once you apply, you’ll receive approval for a credit line that’s equal to how much you deposit in the secure account. This amount of money will cover your balances in case you default on the debt.
Once you have the secured card, make sure to pay your bills on time. Then, you can start building your history to boost your credit score.
Need to apply for a loan? Learn about loans that require no credit check here.
4. Keep Your Accounts Open
Have you stopped using one of your credit cards? Even if it’s an old card, avoid closing it. Closing a card will shorten the length of your credit history. The duration of your history is a factor used when determining your credit score.
5. Speak With an Advisor
The best way to boost a credit score is to work with a qualified financial advisor. A financial expert can help you develop a plan to boost your credit score quickly.
They can also help you find new opportunities for building your credit without risking your credit score.
How to Boost Your Credit Score: 5 Tips for Success
Now that you know how to boost your credit score, get to it! With these tips, you can build your score with a strong strategy. Discover financial freedom with these tips today.
Looking for more helpful guides? Explore the How To section for more tips.