The other day we discussed why your credit score is important. Since I have probably scared some of you, now we will talk about ways to increase your credit score so that you can get the interest rates, jobs, and pricing that you want.
The things below will not kill you. At least I hope they don’t. They are simple things that you can do, and once you get the hang of them all it will just be like normal life.
Below are ways to increase your credit score and get what you want.
1. Either open up a credit card or STOP altogether.
You are probably confused with that heading. However, opening a credit card can be a good way to work on your credit score if you have never had a line of credit. You do need to be SMART with your credit card though. If you know that you will be horrible with it and that you will rack up credit card debt, then don’t even think about it. You don’t want to create more trouble than needed.
If you already have credit cards and you need to increase your credit score for something, then you may want to stop opening up new credit cards. Long standing credit cards are better for your credit score than a credit card that you just opened.
2. Pay your loans and bills on time.
This means a lot. If you can’t pay your loans and/or bills on time, then of course this increases the risk for possible lenders. Pay your bills on time and pay the correct amount each time.
3. Watch your utilization.
Do you find yourself often almost reaching your credit limit? This can really hurt your credit score. You should try to keep your credit spending to under 30% of your overall available credit.
4. Check your credit report.
When was the last time that you checked your credit report? Even if you have never had a line of credit, it is still important to check it. You never know if there may be a costly mistake that is affecting your credit score.
What tips do you have to increase your credit score?