Are you more embarrassed to admit your credit score than you are to admit your weight? Things may look bleak for you, but rest assured that there are surefire ways to increase your credit without attempting a miracle.
The first step, of course, is to get a copy of your credit report. You can get a free copy per year from the three major credit reporting agencies, so you may want to order one for each of the succeeding trimesters.
Once you know how things look, you can then apply the following ways to increase credit.
1. Get a credit card. There are people who don’t believe in using plastic, subscribing to the philosophy that if you don’t have the cash to pay for something, then you shouldn’t buy it at all. As you venture further into adulthood, you’ll learn that cold hard cash is not always handy. In terms of your credit score, responsible use of one or two pieces of plastic definitely works in your favor.
2. Stop maxing out your plastic. What do regularly maxed out cards imply? Not anything good, so make sure you’re aware of your current credit limit, so that you don’t end up draining it to the last drop. It’s even better to under-use your cards. When credit bureaus see that you regularly use only a portion of your credit, they’ll assume admirable restraint on your part.
3. Avoid closing any cards. Even if a credit card is paid off, canceling it causes your available credit to drop, which will look highly suspect to the credit bureaus.
4. Request a raise to your credit limit. Many credit card companies reward good subscribers by raising their credit limit, but if yours doesn’t, you can request them to do so. Just make sure that you don’t succumb to the temptation to test the new limit.
5. Use different kinds of credit. The score is a reflection of how well you navigate the credit system. If you know how to responsibly use various types of credit, you’re likely to get a good score. Being able to manage the payments on a personal loan, an installment-based purchase, your credit card, etc., inspires confidence from the credit bureaus.
6. Always pay on time. Payment delays usually raise a red flag. You never want to seem like you might not fulfill your financial obligations.
All the above are easy and doable, so make the effort to follow them and you can soon enjoy your highest credit score to date.
