You're not the only one struggling with a poor credit score. Millions of people in the United States are in the same boat. If you have a low credit score, it can be difficult to obtain credit cards, loans, or even an apartment. It's good to know that you can improve your score quickly. In this article, you'll learn some surprising 8 tips that will help you improve your credit score.
- Credit-Building Loans
Some lenders offer credit-building loans, which are designed to help people with poor credit build their credit score. These loans have higher rates of interest, but can help improve your credit score.
- Join the Authorized Users
If you know someone with good credit you can be an authorized user of one of their cards. If they are known to make on-time payments, this can improve your credit rating.
- Check your credit report
Checking your credit history is the first thing you can do to improve your score. Your credit score is based on the information in your credit report, such as your payment history. It also includes outstanding debts and your credit utilization. You can get a free copy of your credit report once a year from each of the three major credit bureaus.
- Use a Secured Debit Card
If your credit is poor, you may be denied a traditional card. You can build up your credit rating by using a secured credit card to make small purchases.
- Don't Close Unused Credit Cards
Closing unused credit cards can actually harm your credit rating. It is better to leave them open and use the cards occasionally in order to keep your credit utilization as low as possible.
- Keep Your Credit Utilization Low
Your credit usage is the ratio of the credit you use to the credit you have. Keeping your credit utilization low can help improve your credit score.
- Avoid Debt Settlement Companies
Companies that offer debt settlement services may promise to reduce your debts, but in many cases they do more harm then good. They may charge high fees and damage your credit score.
- Maintain Your Credit Accounts
Having active credit accounts can help improve your credit score. This shows creditors that you are responsible and know how to manage credit.
Your financial wellbeing depends on improving your credit score. By following these 8 surprising tips, you can quickly repair your credit score and take control of your finances.
FAQs
How long does improving a credit score take?
The process of improving your credit score is not a quick one. It could take a few months or even a couple of years before you see any significant improvements, depending on your circumstances.
Will paying my debts improve my score?
The payment of debts will help you improve your score. It shows lenders how responsible you are with credit.
Can I improve my credit score without taking out new loans or credit cards?
You can increase your credit score by paying on time, reducing the credit utilization rate and disputing errors in your credit report. By making on-time payments, keeping your credit utilization low, and disputing errors on your credit report, you can improve your credit score.
Do I need to hire a professional to improve my credit score?
You can improve your credit score on your own by following the tips outlined in this article. Professional help is recommended if you have a lot of debt and need to develop a strategy to improve your score.
Can I increase my credit score with a bankruptcy in my past?
Yes, you can improve your rating even if your bankruptcy is on your record. However, it may take longer to see significant improvement, and you may need to work with a credit counselor or financial advisor to create a plan.