Top Tricks to Improve Your Credit Rating Fast
With the New Year is a new balance sheet and another chance to boost your credit rating. If you’ve struggled with your personal loan and other financial applications because of bad credit, now is the time to work on improving your credit score. Here are some tricks and tips to help you this year.
Check your credit report
Before you roll out your credit score improvement plan, it is important to start from the beginning by checking your credit report. You can do this once annually for free. Peruse your credit files for any errors or inaccuracies. If you find any, report said errors and dispute them if necessary. By correcting any error, you can dramatically improve fast.
Apply for a bad credit credit card
Another trick that will quickly boost your credit score is to apply for a credit card. The advice may sound counterintuitive but it makes sense if you look at the bigger picture. Applying for a credit card offered for people with bad credit is a stepping-stone of sorts to help you prove your creditworthiness and responsibility as payer.
Keep credit card charges at minimum
If you have existing credit cards, you need to keep the charges at minimum. Ideally, the charges should be kept below 30% of your credit limit. Once the bill arrives, pay it in full every time. If you can keep at this habit for several months, chances are high that you’ll see a significant improvement on your credit score in no time.
Request for a credit limit increase
If you’re eligible for a credit limit increase for your credit cards, take advantage of the opportunity and request for it. With a credit limit increase, your creditworthiness also improves. This trick, however, may backfire if taken without caution. If you’re going for a credit limit increase, make sure that you’re not going to increase your charges along the way.
Never miss or delay bill payments
One of the best tricks that works every time when it comes improving your credit score is to never miss or delay a bill payment. Whether it is with a utility bill, phone bill or credit card bill, you must commit to pay all your bills on time. Considering that 35% of your credit score is attributed to your payment history, there’s really no better way to boost your credit score than to show credit agencies that you are a responsible payer.
Pay off high interest debts
Another major factor that affects your credit score is the amount of debt you owe. It is 30% of your credit score. If you want to boost your credit score fast, you need an effective debt repayment plan. You can start by paying off your high interest debt first. This way, you’ll get rid of the high cost interest rates kept adding up to your total amount of debt owed.