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Having a good or high credit score is ideal for getting good credit, but if this is not possible, you need to know how to improve your credit score.
If you don’t have a good credit score, you won’t be able to get good options for securing credit cards, loans and financing.
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Pay attention: applications for loans, cards, and other financial products can be refused if you have a bad name or a low credit score.
Therefore, it is of utmost importance that you know exactly what to do to be able to improve your credit score. Here are the best ways out.
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7 tips to improve your credit score
Firstly, pay attention to each of the following tips, because each tip can make the difference in getting to improve your credit score up.
1. Pay your bills on time
First of all, we have to point out that the first and foremost tip is basically to pay your bills on time. It may seem like a simple attitude, but it is the most essential one.
Payment history is the most influential factor for both your FICO and VantageScore that a person is a good payer, and it also increases the credibility of the person.
In that sense, if you have bills due on the 5th, pay them before or no later than the 5th, for example. With this, little by little, your score will increase.
2. Use a secured credit card
Going down the list, another good option to boost your credit score, is to get a credit card secured by a cash deposit to start rebuilding your credit history.
This is the main way to start rebuilding your credit standing and show your creditors that you are being a good payer. This builds more confidence in you.
In this case you make a deposit, where it is usually equal to your credit limit. With this, there are several options, as well as using a normal credit card with credit based on your money to help you increase your credit.
As the months go by you will have good opportunities and of course you will see your credit score increase.
3. Become an authorized user
Another good option to get your credit score increased is to use the “authorized user” feature.
This feature is interesting if someone in your family or friend has a credit card account with a high credit limit and a good payment history.
With this, you can ask them to add you as an authorized user, where you can benefit from the positive payment history of the primary user. And rest assured, the account owner, your friend or relative, does not need to allow you access to use the card, not even the account numbers and passwords.
If you are just starting out in the world of credit, this is the best option on this list. Thus, for people who have extensive experience in the credit world, it is not so advantageous.
4. Be cautious when asking for credit in the market
Following the list of the main ways to improve your credit score, we can say that one of the main mistakes is to ask for credit frequently, where this can greatly hinder the process of getting your score increased.
When you force this recurring credit request, in several platforms, in a short period of time, you end up giving the impression of urgent need for credit, where companies end up understanding as a risk of indebtedness.
With this, the best solution to avoid this is to ask in a spaced way, especially with days of interval between each request, always being careful not to interpret it as urgent need and credit risk.
In this sense, remember that when you think about obtaining and applying for a new credit, always check your chance of approval to avoid this effort to happen.
Another good option is to seek a pre-approval or pre-qualification, where in these cases the credit deduction is lower when you make the inquiry.
5. Make a credit mix
This tip is very interesting for you who need to increase your credit score. The tip here is basically to pay your various bills on time and on a recurring basis.
Paying your credit card bill, student loan and car loan demonstrates your ability to pay well, all of which are good outlets in this strategy.
Focus beyond that, focus on having active external sources of credit, such as credit cards and loans. All of these will generate reports showing that you are a good payer and manager. In that case, the companies that provided you with them will have more credibility in you.
6. Check your credit reports every 4 months
Also, another essential tip to improve your credit score is to request a free credit report from a different reporting agency every 4 months.
The factor here is to consult spaced out, because if the forced evaluation is done at short notice, your credit history may suffer and reduce further.
In that sense, with histories requested and issued every 4 months, your score balance will tend to increase significantly over time. For those looking to improve your credit score in the medium to long term, this is the best option.
7. Apply only for the credit you need
Many people end up falling into the mistake of applying for high loan amounts that go past enough, mainly in an attempt to have more cash on hand.
In this sense, lenders start to look at you with different eyes, asking “Why does he want to ask for more credit than he needs?
So only ask for the amount you need, don’t think that lenders won’t distrust you with this attitude, because they will.
8. Be Patience
Finally, don’t get bogged down day after day, night after night checking your credit situation and thinking that your score will increase quickly, because it won’t.
The process takes days, weeks, months, and even years to get to high numbers like 760 and 800. It all depends on how you will get them to trust you in that time.
Focus on the tips given here, organize your finances, create good habits, pay your bills on time, and apply for credit only when you need it. With this, as time goes by, you will see your score increase progressively.
Finally, monitor your credit, watch your score, and do everything you can to walk well on it and not stumble and get lost along the way.
3 Main credit attitudes that you should not do
Finally, when we find ourselves in a difficult financial situation, in which we don’t know what to do, we end up trying everything.
In this case, if you do it and have some attitudes, as we will mention below, you can end up doing yourself a lot of damage. Watch:
- Do not apply for multiple credit cards in an attempt to get more credit to use, as this could lower your credit score due to forced checks.
- Do not apply for a loan just to improve your credit history, do it only if you need fast credit with low rates.
- Do not cancel your credit card after paying your debts. Always keep your card, so you show that you can use it again.
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