Credit Score: 5 Tips to Improve It Quickly!

Credit Score: 5 Tips to Improve It Quickly!

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Have you had your credit score looked at recently? For those of us who haven’t, we really need to start monitoring our credit! Many people have no idea of the advantages of a higher credit score. In addition to making us eligible to make a big purchase like a house or a car, good credit is also essential to ensuring that we’re getting the absolute best deal possible.

For example, let’s say we want to get a car, but our credit’s shot. Even if we have the income to afford it, if our credit is no good, we’ll probably have a hard time getting a decent interest rate. So what can we do? Here are five of the simplest ways to increase our credit score in as little as six months. That’s right, six months! These little hacks could get us one step closer to achieving financial success!

1. Get more credit.

Now I know that sounds redundant, but hear me out. One of the factors that companies look at when determining whether they want to give us credit is what type of accounts we have and how long we’ve had them. When lenders see that a customer has a lot of credit card accounts and is paying them on time, then they think the customer knows how to manage money. But don’t get crazy with the credit; too many credit inquiries will make lenders think that we’re in trouble and need money quickly. So don’t open more than one new credit card per year. This approach, then, is more of a long-term solution to improving a credit score, not a quick fix.

But don’t get crazy with the credit; too many credit inquiries will make lenders think that we’re in trouble and need money quickly. So don’t open more than one new credit card per year. This approach, then, is more of a long-term solution to improving a credit score, not a quick fix.

2. Get the credit limit increased.

Now this is a bit tricky. First, let’s understand why we want to increase it. Experts say that for a better credit score, we should use 30% or less of a card’s credit limit at all times. So for a $1,000 credit limit, we’d keep it under $300, and for a $10,000 credit limit, we’d keep it under $3,000. Obviously, it’s much easier to live on $3,000 than $300, so we’d want the higher limit since it gives us the higher $3,000 amount to use as our recommended 30%. So if we get our credit limit increased, we’ll always find it easier to stay under that magic 30% number. Thus, it’s in our best interest to increase our credit limit whenever we can. Sometimes, we can request it directly from the credit card company, but other times, the credit card company will do it on its own.

improve credit score

So if we get our credit limit increased, we’ll always find it easier to stay under that magic 30% number. Thus, it’s in our best interest to increase our credit limit whenever we can. Sometimes, we can request it directly from the credit card company, but other times, the credit card company will do it on its own.

3. Keep accounts open.

This one is actually a big deal, and most people don’t even realize it. When we start to close all of our credit cards and revolving accounts, credit lenders view this as being negative. The reason is simple. When people are trying to get themselves out of trouble or they have been in trouble, then they’ll start to close all of their accounts. Lenders see this and automatically assume we don’t trust ourselves with that amount of responsibility. If we don’t trust ourselves with that much responsibility, then how can we expect them to?

Therefore, the best option is to keep all of our accounts open. Pay them down or paid them off, and then leave them alone. Don’t close them. Many companies will close our account for us if we elect not to use it for a certain amount of time. If they close our account for us, then it doesn’t affect our credit; however, if we close our account, it will affect us in a negative way.

4. Find out what’s on the credit score.

Unfortunately, many people aren’t honest. Identity theft is real, and even the best of us can fall victim to it without even realizing it. One way to increase our credit score is by getting things off our report that don’t belong. Take the initiative and invest in a thorough credit report. Look at everything that has ever been reported for us on all three of the major credit bureaus. See something on it that doesn’t look right? Contact the credit bureau immediately and have them straighten it out. Some of the things that could pop up are surprising.

Look at everything that has ever been reported for us on all three of the major credit bureaus. See something on it that doesn’t look right? Contact the credit bureau immediately and have them straighten it out. Some of the things that could pop up are surprising. And believe me, it happened to me!

5. When in doubt, buddy up.

Although there is some debate as to how effective this can be, there are definitely long-term benefits to buddying up in terms of increasing our credit score. To “buddy up” means to borrow someone else’s credit. That doesn’t mean to take someone else’s identity. If we know people we can trust to pay their bills on time (i.e., a spouse or parent), then we should ask about becoming an authorized user on one of their credit card accounts.

They can get us either a duplicate of their own card or a new card with a different number that’s still on their account. But only the different number will let us increase our credit score. We’ll have to sign paperwork in order to get this right since essentially we’re both agreeing to pay all cards in the account that might go unpaid. This can be very risky, so let’s make sure that whoever we decide to do this with is actually in good standing with the credit card bureaus before signing on that dotted line.

So there’s a rundown of the different ways that we can increase our credit score in a matter of months. Rome wasn’t built in a day, but following these tips will guarantee to help us reach our financial goals sooner than we think!

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