Perhaps you’re already pretty responsible with your finances. You have an above average credit score and it’s remained steady for quite some time. But that’s just it. It hasn’t budged.
Maybe you’ve gone to make a sizeable purchase or investment and you’ve been declined because your credit score just wasn’t high enough. Well, all is not lost. There are simple ways to help increase your credit score without taking any risks.
Following these 7 tips just may help you get that boost you need!
The Federal Trade Commission performed a study that said 1 in every 5 people had an error with their credit report. Errors can negatively affect your score and cause it to head the opposite direction.
Since consumers are allowed 3 free credit checks every year, make sure you use them to correct any faulty information. An unintentional mistake could keep your credit from increasing.
Applying for numerous credit cards during one sitting before you’ve finished your first cup of coffee is not a good idea. Since “length of credit history” is one of the five factors that FICO uses to calculate your credit score, opening numerous accounts at once can severely affect your score.
Show you can balance multiple cards but letting your foot off the gas a little.
Although you may only use 30% of the credit cards you own, don’t cancel the ones that hibernate in your underwear drawer. You want to make sure your available credit stays as high as it can to increase your credit score.
Delinquent and consistent late payments do nothing for better credit. Life gets busy, and sometimes a bill can be neglected unintentionally. But your credit score doesn’t have feelings and intentions don’t mean anything. Paying your bills on time is always a good call. Set up auto-payments on as many accounts as you can.
Having a variety of credits demonstrates that you are responsible enough to juggle them all at once. Consistent and timely payments on auto loans, medical bills, and credit card bills influences 10% of your credit score. This can certainly give your score a boost.
Maybe you had a previous debt—perhaps you still do—that was sent to collections and you are slowly chipping away at it. Try to pay it off immediately if possible. Once a debt that was sent to a collection agency is paid off, it no longer negatively affects your credit score.
If you use your credit card for all your purchases and pay it off at the end of each month, still make sure your balance stays fairly low. Once you venture into the above $3,000 territory, you’re in danger of stagnating your credit score. Just keep an eye on that monthly total balance.
It may take 12 months or so to really see a difference in your credit score but the longer you take to implement these tips the longer your credit score will stay the same. So maybe this bonus tip is in order: Start working on this list today!