03/07/2022
7 WAYS TO IMPROVE YOUR CREDIT SCORES QUICKLY
If you’re looking to improve your credit score, the first thing you should know is that it doesn’t happen overnight. Improving your credit rating will take time and effort on your part, but in the end, it can be done, so long as you have a plan of action to follow and the motivation to complete it. This article provides seven tips to help jumpstart your progress toward a better credit rating.
1) Start a Credit Card
One of your best bets for fast credit improvement is to apply for a new credit card and make sure you pay off its balance every month. The act of applying, as long as you don’t get denied, adds points to your score immediately; paying off your balance adds even more points over time. All in all, starting a new line of credit—and managing it well—is one of the fastest ways to increase your score.
2) Monitor Your Credit Report
There are a few ways you can monitor your credit report, but one of our favorites is Credit Sesame. It’s free, it’s safe, and it tells you when there is new activity on your report. Whenever you see something suspicious on your report—whether it’s an account that doesn’t belong to you or a balance that looks high compared with your recent spending habits—you should reach out to whoever pulled your credit (like a bank or insurance company) and dispute it.
3) Get a Secured Credit Card
If you have a poor credit score, you may be denied unsecured credit. To get around that, apply for a secured credit card. These cards require you to put down collateral like an unused savings account or a certificate of deposit and will allow you to build your credit score by making regular purchases. As long as you make your payments on time and use only a small percentage of your available credit, your score should gradually improve over time. If not, see if there’s a rewards program attached to your secured card—if so, it might be worth applying for one that has better terms even if it has an annual fee.
4) Pay Bills on Time
To protect your credit, it’s a good idea to make sure you pay your bills on time. If you don’t, it can negatively impact your credit score and your ability to obtain loans in the future. Take care of any bills that come up on time each month so you don’t have a problem later. This can also help avoid late fees and improve your credit standing over time.
5) Get New Credit Cards Slowly
Credit cards help your credit score because they show that you can use plastic responsibly—making timely payments and paying off your balances in full each month. But applying for a slew of new credit cards can do more harm than good. To improve your score quickly, start with one or two new lines of credit, then focus on taking care of existing debt and making on-time payments for several months before asking for another card.
6) Take Out a Loan
The traditional way to improve your credit score quickly is through what’s called a hard inquiry. A hard inquiry occurs when you take out a loan or open up a new line of credit, and it’s these types of inquiries that lead to an improved score over time. Of course, not everyone has access to those sorts of funds, and for those who don’t, there are other ways to get things moving in the right direction.
7) Keep Low Balances on Each Card
If you don’t pay off your balance in full each month, it will take longer for your credit score to improve. Try keeping your balances under 20% of each card’s limit. For example, if you have a $1,000 limit on one card and a $2,000 limit on another card, aim for balances of less than $200 on each.
Thanks for reading!
A1 Credit Bae
Follow me IG:
Twitter:
Youtube: A1 Credit Bae
FB: A1 Credit and Financial Solutions
