Laura gives 4 tips to raise your credit score fast.
Building credit is easy when you understand a few simple rules. You can’t get perfect credit overnight, but as you accumulate a good history on your credit report, your score will rise. Then you’ll get the benefits that come with having good or excellent credit, like:
• credit cards with competitive interest rates
• inexpensive loans
• lower insurance rates
• not to mention, impressing a potential new boss
Follow these 4 tips and raise your credit score:
Tip #1: Pay Bills On Time
Staying on top of your bill due dates is best way to boost your credit because it accounts for 35% of your credit score, which is more than any other factor.
Tip #2: Use a Secured Credit Card
A secured credit card is your best bet if you can’t get approved for a regular credit card. You put down a security deposit, so it’s kind of like training wheels for the real thing.
Choose a secured card that reports payment history to the credit bureaus (like the Open Sky Visa Card). Then make small charges that you pay off in full each month and you’ll see how easy it can be to build a good credit history.
Tip #3: Don’t Over-Apply for Credit
Applying for too many credit accounts at once will cause your credit score to drop.
If you’re shopping for a new loan or refinance, submit all your applications in a short time period, like within a week or 2, so they don’t show up as a red flag on your credit report.
Tip #4: Become an Authorized User
If you have a relative or friend with good credit and they’re willing to add your name to their card, that can help you build credit. Just make sure that the card company actually reports payment history to an authorized user’s credit file.
Also, remember that if the cardholder slips up and doesn’t make payments that could negatively affect your credit score.