Getting and keeping a healthy credit score is extremely important in today’s society. When you go to insurers, lenders, landlords and even prospective new bosses, many of the decisions that they make are based on what they see on your credit report and in your credit ratings. The higher credit score you have, the better the interest rates on loans that you’ll receive, the easier you’ll be able to rent an apartment and they better likelihood that you’ll get the job you’re looking for.
While there are certainly many ways to improve your credit score, many of them take quite a long time to take effect. If you’re looking to improve your credit score fast, we put together a few tips for you below that should help you to do just that. Enjoy.
Tip 1: If you don’t have a credit card, and you have no credit history, it’s time to get one.
Here’s a fact; you can certainly live without a credit card, but not having one will prevent you from building a credit history that lenders can use to determine if they should lend you money. A healthy credit history tells them that you’re responsible when using credit and, if you pay your balance off every month and make sure you never pay late, having one or two credit cards is actually the best thing you can do for your overall credit health and to increase your score quickly.
Tip 2: Get your Credit Reports regularly and make sure to fix any mistakes that you find.
This is something that’s quite easy to do but very few people do it regularly. The “Big 3” credit companies, Equifax, Experian and TransUnion, have to give you a copy of your credit report for free once a year by law. You should definitely take advantage of this to get those reports and, if you come across any mistakes or false information, follow the instructions on their website to get them taken care of. This can also help you to determine if you’ve been a victim of identity theft and put things in order before some scumbag destroys your credit.
Tip 3: Applying and opening several credit accounts.
If you’re prone to overspending on credit cards this might not be a good idea but the fact is that you can improve your credit score quickly by getting several new credit cards. The initial application for these cards will cost you because it will typically knock your credit score down slightly. The overall benefit however outweighs the cost because your credit utilization ratio, something that makes up 50% of your credit score, will look much better if you have $20,000 in possible credit but only $2000 in actual credit charges. That would give you a credit utilization ratio of 10%, which is optimal.
Tip 4: Open an installment loan and pay it off on time.
An installment loan like a home mortgage or car loan, or even a student loan for college, if it’s paid off on time every month, can help improve your credit score quickly. The fact is that an ideal credit record includes things like credit cards which are considered “revolving credit” and also things like mortgages and car loans which are considered “installment loans”. Just make sure you make ALL payments on time! If you’re running low on cash one month just make sure you pay your note installment and then you can win it big at the casino table games.
If you don’t have student loans, aren’t in the market for a new home and don’t need a new car, you can simply take out a small personal loan from your bank or credit union and begin to make the monthly payments, being sure to make them on time every month. Also make sure that your loan, especially after it’s paid in full and on time, is reported to the three major credit reporting bureaus.
These 4 Tips should help you to increase your credit score much faster than simply paying down your credit card debt. Keep in mind that paying off any debt that you have on time and as quickly as possible is one of the best ways to make sure that your credit score is always looking good.