Top 8 Easy Tricks to Increase Your Credit Score
If you’ve had moments when you’ve fallen behind on your credit card and other debt payments, your credit rating can take a hit. And if that’s the case it could stop you from doing various things like getting a traditional loan or even find some housing. The good thing is, there are plenty of credit score hacks that you can use to increase your credit score! In fact, if you want to learn how to improve credit score fast, Utah Title Loans, Inc. have eight easy tricks to increase credit score and by how many points they could help.
Increase Credit Score Today Using These 8 Tips
1. Report Any Mistakes You Find Right Away
The first tip that could increase credit score is to report any mistakes you find on your credit report as soon as you see it. For example, you may have been a victim of identity theft, or some debts could have been incorrectly reported. If that is the case, you need to report them right away so that the three major credit bureaus can get them fixed sooner rather than later. While it may take some time for you to find the error, get it reported, and have them take action, it could have a big impact on your score.
2. Pay Your Bills On Time
No tip would work to increase your credit if you aren’t paying your bills on time. This is the best of the credit score hacks to make sure your credit doesn’t dip too low. Paying your bills on time is one of the highest scoring factors for your credit score, it is highly recommended that you do so. You can even go as far as to pay for your bills every two weeks instead of once a month. Paying bills every two weeks lowers your credit utilization and reduces “bill shock” when several notices arrive at the same time.
3. Set Payment Reminders
Along the same vein as the pervious point, if you want to make sure you are paying your bills on time, consider setting payment reminders. Late payments can affect your credit score in a bad way and leave you with a lot of interest payments. But sometimes, we just forget to pay the bill or are too busy to make the transaction. You can use a money management app like Honeydue to set up reminders so you are never late paying your bills again.
4. Create A Budget
The next thing you can do if you want to learn how to improve credit score fast is to create a budget. Creating a budget allows you to keep your spending in check – which will lower your credit utilization and make sure you can meet your payments on time. Your budget can also help you avoid overspending on credit, which is 30 percent of your FICO credit score. And the best part is there are plenty of methods you can use to create and stick to your budget.
5. Try To Build Account History
Older bank accounts or credit card accounts help establish your credit history with the institution and strengthen your overall credit score. So even if you rarely use that card or account, keep it active. For the same reason, avoid opening several new accounts or credit cards at the same time. This can pull down your credit rating, especially if you close them after a short time. And if you absolutely must close down an account, try to make it a newer one that has less of a history.
6. Plan How To Pay Off Multiple Cards
If you have balances on several cards, focus on paying off “maxed out cards” or any card that is very close to the credit limit first before you handle any cards that aren’t close to their limit. Focusing on your maxed out cards before anything else has a better impact on your credit score than paying small amounts on several cards. This is because paying off your maxed out credit cards – or credit cards close to their limit – will bring down your credit utilization.
7. Ask For A Higher Credit Limit
If you are in a good standing with your creditors, one thing you can do to make sure you stay there is to ask for a higher credit limit. Increasing your credit limit while keeping your balance the same will lower your credit utilization – and as we’ve said throughout this article, this is a big way to improve your credit score. Now, if you do go this route, make sure you practice self-control when it comes to your spending pattern. Just because your credit limit increases, doesn’t mean your spending should.
8. Diversify Your Credit Mix
Your credit mix accounts for 10% of your credit history. For example, a good credit mix may include a credit card, student loan, car loan, and a mortgage. That is better than having just several credit cards, which are considered one kind of loan. This option could help someone who only has credit cards because it can improve your credit history – especially if you are in good standing with your other credit sources. And as soon as you start using the new account, it could immediately improve your credit.
What If An Emergency Hits Before Your Credit Improves? Get A Title Loan Or Payday Loan!
As good as these tips can be to improve your score, what should you do if you run into an emergency while your score is still low? Well, you can get a title loan or a payday loan from us at Utah Title Loans, Inc. to help!. Car title loans are a short-term loan that uses your vehicle’s lien-free title as collateral. On the other hand, a payday loan bridges the gap between pay periods when you need quick money and does not use any collateral. You can go to our website to learn more about either of these loans.
Start Working On Improving Your Credit Score Right Away!
Now that you know how to improve credit score fast, you can get started! As tough as having poor credit can be, it doesn’t have to stay that way. Use these credit score hacks now to help you improve your score. With just some patience and these tips, you can have the score you want. And if you run into an emergency before you have good credit, remember you can get either a title loan or payday loan from us at Utah Title Loans, Inc. for help. Fill out the online form on our website to being the process.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.