7 ways you can improve your credit score right away

7 ways you can improve your credit score right away

You’ve probably understood that your credit score plays a huge factor in all financial aspects of your life. You might not realize it, but it can have a great impact on factors that decide whether you qualify for getting any form of loans.

 

We’ve compiled few easy steps that can help any beginner build their credit score:

Get a credit card

The first and foremost step should be that you apply for a credit card. Having a credit card under your name could do wonders to your score – given that they are managed with care.

Instead of getting a traditional card, we suggest that you go for a secured credit card that take cares of reporting to the major credit bureaus.

Watch and eliminate your credit card balances

It is very important that you keep your credit balance low to even null. While the optimum percentage is thirty percent, but the lower this percentage is, the better it is for your credit rating. As experts say, one of the items that is considered when evaluating your score is the number of cards that still have balances.

Bonus: Even if you pay your balances in full every month, you could still have a higher utilization ratio than you actually expect.

Utilize a calendar and pay bills on time

It is highly suggested that you use a calendar and other methods to alert when payments on your cards are due. One of the greatest and yet the simplest method of maintaining a good credit score is simply by making payments on time. If you believe that you can miss the payment deadline by any chance, we suggest you to come up with a schedule that involves you taking care of your credit card bills twice in a month.

Stay within your limits

You should make sure that you have a good grasp on the maximum limit on your credit card. Always make sure that your current reported credit card limits are much lower than they actually are. It is advised that you do not give an impression as if you are maxing out your means every month.

Raise your credit limits

Feel like taking a risk? You can also request your creditors to increase your limit. Although, this step can help establish your credit score at a faster pace, you should also be very careful. Steer clear of this method if you have bad spending habits and cannot trust yourself.

Switch it up

The use of taking out a small personal loan or purchasing an item on installment can act as a modest boost to your score. However, you should be sound of managing all the methods quite effectively.

Actively review your credit report

Always, always, always remember to review your credit report before you do anything else. It is suggested that you request a free credit report from any of the top credit reporting companies and examine just about everything. In case you note an inaccuracy, you should report it without any delays. In this way, you can make sure that your efforts are not wasted and that your credit report remains clean.

 

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