Quick and Easy Ways to Increase Your Credit Score

Your credit score is one of the most crucial measures of your financial standing. It tells financial institutions how responsible you are with the way you use credit.

The better your score is, the easier you will find it to access lower rates and better credit cards. If you have a less than favorable score right now, here are some tips to help boost it fast.

Check Your Credit Reports

To improve your credit score, you’ve got to first know what is working against you. That’s where checking your credit reports comes in. Get a copy of your credit report and see what could be bringing down your score. If it’s low balances, try to clear at least some of your high-interest debts. If it’s a fraudulent entry, get it removed from the report immediately.

Pay Your Bills on Time

Your payment history accounts for about 35% of your FICO credit score. That’s why it’s important to pay all your bills within the due date. If you have trouble remembering when a payment is due, consider creating a filing system to help you keep track of all your bills. You can also set payment reminders so you know when a bill needs to be paid. Another thing you can consider doing is automating your bill payment, so the amount gets transferred from your bank account automatically before the due date.

Aim to Reduce Your Credit Utilization

Credit utilization refers to how much credit limit you have available to you, and this also impacts your credit score substantially. If your credit utilization is too high, try repaying some of your debt if you have some money saved up. Or, if you have a credit card and have no trouble repaying your bill in full every month, check if the credit card company can increase your credit limit – this will automatically lower your credit utilization.

Don’t Apply for Every New Credit Card

It’s tempting to apply for new credit cards that you think may suit your lifestyle. But, each time you apply for one, the credit card company does a hard inquiry into your credit history. This can lower your score. So, avoid applying for every new credit card you come across.