A solid credit score can save you a ton of money on loans, credit cards, and even your next apartment. And here’s the good news: you don’t have to wait years for it to go up. Here’s a breakdown of six practical steps you can take to get your score moving in the right direction.
Check Your Report for Errors
Grab your annual free credit reports from all three big bureaus — Experian, Equifax, and TransUnion — and go over them with a fine-tooth comb for errors. You might find debts you’ve already paid or late payments that never happened. If you spot any mistakes, file a dispute with the bureau ASAP and see if you can get the error removed. This record cleaning will boost your score and set things straight!
Set a Realistic Goal for Your Score
Getting an 850 overnight just isn’t going to happen, and trying to make it happen leads to disappointment and self-defeating behaviors. Focus on small, steady gains: they’re possible even within a few months if you stick to your goals! Payment history is a massive chunk of your score, so one of the best goals you can set is to make every single payment on time.
Become an Authorized User
See if there’s someone in your life with a long, positive credit history and ask if they’d be willing to add you as an authorized user on their card. You don’t even need to use the card for this to have benefits. We’d just recommend having some good open conversations, both with yourself and this person, about expectations if you do get access to the card.
Request a Credit Limit Increase
Call your card issuer and ask for a credit limit boost, provided you can trust yourself to not make matters worse by maxing it out at the new amount. A higher limit with the same balance lowers your overall credit utilization, which means a better score. There’s arguably no real drawback to taking an increase unless you struggle with bad spending. Be honest with yourself if you are, and maybe skip this tip and opt for something else.
Consolidate Debt With a Personal Loan
If you’re juggling a few high-interest credit cards, a personal loan could be exactly what you need to give you some breathing room. You can use these to pay off your cards and simplify your debt into one payment, maybe even giving you a lower interest rate.
Not only that, but this adds variety to your credit, which also improves your score! As with all loans, make sure you cross your T’s and dot your I’s before you sign anything to ensure you’re getting a reasonable deal!
Avoid Opening Other Accounts
The other five ways tell you what you should do to improve your credit score. This tip is telling you what you shouldn’t do, and that’s avoid hard inquiries as much as possible. Only open new accounts if you need them, not just because of some flashy sign-up bonus, especially if you don’t have a healthy relationship with credit.
