Credit is such a weird concept. Somehow, three digits control our financial destiny. Whether you like the system or not, we are stuck with it. Since we don’t have a choice to participate in the credit system, its best to have the highest score possible. Here are the best ways to raise your credit score in the fastest way possible.
The first step is to get a copy of your credit report from AnnualCreditReport.com. The three major credit reporting bureaus must give you one free copy per year, so you are allowed to order one every four months.
To view your credit score for free and without affecting your score, check Credit Karma.
Then use one or more of the following tips to boost that three-digit number that has increasing influence over our everyday lives.
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1. Dispute Errors. Mistakes happen. You can dispute errors online through Equifax, Experian and TransUnion. After you’ve fixed any errors, the next step would be to negotiate.
2. Negotiate The Removal. You can’t deny that you missed a few credit card payments when you were going through hard times or between jobs. Although, you can ask creditors to “erase” that debt or any account that went to collection. Write a letter offering to pay the remaining balance if the creditor will then report the account as “paid as agreed” or hopefully remove it altogether.
Don’t count on a verbal agreement. Get the creditor to agree in writing before you make the payment
You might also be able to ask for a “good-will adjustment.” Suppose you were a great credit card user and paid all your bills on time until that period of hard times or unemployment. You made a late payment that now shows up on your credit report. The next step would be to write a letter to your credit card company emphasizing your previous good history and ask that the mistake be removed from the credit report.
3. Get A Credit Card. Having one or two cards will positively affect your score as long as you don’t use more than 30% of your credit line and pay your bills on time. In other words, be a responsible user of credit. Ideally, you should be paying your balance in full every month.
With a low credit score, you might have to go for a secured credit card. The best secured credit cards report to all three credit bureaus monthly. The best secured credit card is the Capital One Platinum Card. There is no annual fee and it reports to the three bureaus every month. To apply for the Capital One Platinum card or other great secured cards, click the link below.
Check Out Some Of The Best Credit Cards To Raise Your Score Credit Card Page
4. Become An Authorized User. This means asking a relative or trusting friend to be added to their existing credit card account. Most importantly, pick someone who has healthy credit habits. If they pay their bills on time and have low credit utilization, you will reap the benefits. If they have a faulty credit history and poor judgment when it comes to credit cards, your score will be negatively impacted. Choosing the right person to become an authorized user is crucial to your credit score improving.
The best part about becoming an authorized user is you don’t have to use the credit card. The primary account holder does all the work with their responsible spending and payments. If your ideal candidate is skeptical, you can let them know that you don’t need to posses the card at all. They can receive the authorized user card in your name and keep it or cut it up. The most important part of the equation is that you become an authorized user under a responsible person.
5. Under-Use Your Cards. When using your credit card, never use more than 30% of your credit line. As stated above, you should be spending money you already have and paying the credit card bill in full very month.
For example, suppose your Visa has a $1,500 limit and you routinely charge a $1,000 a month. It doesn’t matter if you pay it all off before it’s due. What matters is the credit bureaus and banks think “Bob is using 66% of his credit. He is a risk.” The next step can help you with this issue.
6. Raise Your Credit Limit. Ask your creditors to increase your credit limit. Be careful with this one. Raising your credit limit only works if you can trust yourself not to increase your spending habits. Otherwise you’ll be right back to using 66% of your credit each month and stuck with a low credit score. Here are some detailed instructions of what to say.
7. Don’t Close Any Cards. Canceling a credit card will cause your available credit line to drop, resulting in your credit score dropping as well. If you have a credit card that isn’t getting much use, keep it. Another common mistake is when someone finally pays off their credit card, they cut the card and cancel the account. Although this makes for a great dramatic victory, it hurts your score more than helps it.
For any cards that don’t get swiped much, try to put at least one small purchase every six months. Sometimes when credit card companies will close the account if it sees the customer not using the card.
8. Pay Your Bills On Time. Your payment history accounts for 35% of your credit score. If life gets crazy and your schedule barely allows a bathroom break, then automate your payments. You can do so with your online credit card account and pay the minimum each month if you forget.
Another great tool is Debitize. When you connect your credit card to Debitize, it treats your credit card as a debit card. Each payment will be paid in full each day. Check out https://debitize.com/
Not Sure Which Card To Get? Get a Free Credit Card Consultation Today Click Here
What are some ways you raised your credit score?
These are great tips. I just asked my dad to be an authorized user for his account and not even have access to the credit card. Great way to establish history. Thanks so much for sharing.
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