On certain occasions, having the highest credit score possible can hold several advantages for you. Perhaps you want to start refinancing your mortgage. Maybe you’re trying to recover from bad debt and apply for a credit card.
Whatever the reason may be, having a high credit score is always beneficial. You’ll also be glad to know that if you’re struggling with a low credit score, you’re in a much better position to make strides towards a high score than a person who already has one.
Increasing your credit score can be easy in this scenario. Little changes will result in significant jumps, and with every marginal increase, you’ll notice how your life gets easier. But with that said – how do you increase your credit score quickly? Here are some fool-proof strategies that can help.
Pay Your Bills On Time
The most obvious and important step you can take towards increasing your credit score is paying your bills on time. If you’re not punctual with your bills, no other approach will work. The history of your payments is the most vital factor when calculating your credit score.
Most people don’t know this, but late payments can stay on your reports for seven years! If you forget to pay the bill for 30 days or more, contact your creditor. Offer to pay the money immediately and ask your creditor if they can consider not reporting the bureaus’ incident.
Pay More Than Once
If you can make micropayments during the month, your credit balance will stay low, and your score will gradually improve. This also constantly keeps the needle of your credit utilization moving, which is good for you!
A low utilization ensures your credit score stays on the good side. After your credit history, this is another critical factor that can heavily influence your score. However, if you want to see changes quickly, don’t let your utilization limit build – you’ll see the impact right away!
Request For A High Credit Limit
If the credit limit increases but the balance remains the same, the utilization of your credit drops almost instantly. This improves your credit score. To do this, call the issuer of the card and ask them if you’re eligible for a higher credit limit. Ensure that they know this isn’t a hard credit inquiry, or you can temporarily lose a few points.
If your income has increased, you’ll have a shot towards getting the limit you dream of.
Fix The Errors In Your Credit Report
For those of you who are still wondering, “how do you increase your credit score quickly?” we ask you this: Have you ever considered disputing the errors you see on your credit report?
You can get a report from the three big credit bureaus (Equifax, Experian, TransUnion) once every year. To do this, visit AnnualCreditReport.com and make a request. Once you see the errors, dispute, and get them removed from your credit report.
The Bottom Line
Remember the two golden rules, and you’ll be good for life:
Keep the credit card balance low. Pay those bills on time! Follow these two to the bone and toss in some of the creative strategies we’ve recommended, and you’ll be okay.