Below are some hacks to increase your credit score fast and help boost your credit line.
If you’re worried that your credit score is not where you want it to be, these tips can be extremely helpful.
First you have to understand how credit works and realize that there is no way to drastically change your score over night.
Once you understand how your credit score is calculated you can figure out what can negatively impact your score.
Adversely, you can start to comprehend what you need to do in order to increase your score.
Check out these hacks to increase your credit score fast and start heading in the right direction with your financial future.
Hacks to Increase Your Credit Score
- Understand How the Credit Score Works
- Keep Accurate Records of All Financial Transactions
- Negotiate With Creditors
- Avoid Opening New Accounts
- Pay Your Bills Earlier Than the Due Date
- Free Credit Score
Understand How the Credit Score Works
What is a Credit Score?
A credit score is a number that helps potential lenders and creditors determine the risk of lending money.
A credit score is determined by looking at the information in your credit report, which includes your payment history.
It also includes the amount of debt you have, and the length of time since you’ve had credit.
A higher number indicates a lower risk.
The most common scoring system used by lenders is called the FICO score, developed by Fair Isaac Corporation.
There are three different types of scores: a base score, an investment score and an employment score.
Each one ranges from 300 to 850 points.
Keep Accurate Records of All Financial Transactions
Keeping accurate records of all financial transactions is the best way to maintain a good credit score.
If you have trouble keeping up with your finances, use an app like Mint or Personal Capital.
These apps will give you a snapshot of your financial life and show you where your money is going.
In just a few minutes, these apps can help you make better decisions about how to spend your money wisely.
The apps are free and very easy to set up. There’s no downside at all!
Negotiate With Creditors
You’ll be surprise dhow many things in life you can get by simply asking for it.
This includes asking to reduce your payments or asking for an increase in your credit line.
Negotiate with your creditors if you can, you have nothing to lose.
A lot of people don’t know that their credit score could be improved by negotiating with their creditors and not just paying the minimum balance on their cards.
The key is to negotiate in a calm, non-confrontational manner.
You will be more successful if you keep your tone polite and matter-of-fact rather than sounding angry or impatient.
When you’re speaking with them, use “I” statements so they don’t feel attacked or blamed.
As long as it’s clear that you’re willing to pay back what you owe but need some help getting there, it’s worth trying negotiation.
What about bankruptcy?
In most cases bankruptcy isn’t advisable for people who want to rebuild their credit score quickly because it stays on one’s record for 10 years from the date filed.
Avoid Opening New Accounts
Avoid opening new accounts without having a need.
It is easy to get caught up in the idea of opening a new account with a different bank, but understand that you are hurting your credit score by doing this.
Keep your credit card balances low and try to pay them off every month.
When it comes time for the annual fee, consider the benefits of cancelling the account. Or once again simply ask for a lower annual fee.
If you have trouble keeping up with monthly payments on everything, prioritize what has the highest interest rate first and work from there.
Lastly, never apply for any kind of loan without understanding what the interest rates are first. Also be aware of any additional fees that may be charged.
Pay Your Bills Earlier to Improve Credit Score
Paying your bills on time every time is the most important factor in determining your credit score, so make sure you set up automatic payments with all of your creditors.
To avoid late fees and improve your score, set up payment reminders that go off a week before the due date.
If you’re trying to build credit from scratch and don’t have any existing accounts, don’t be afraid to open a secured card.
Secured cards require an upfront deposit that becomes available for use if you make all of your monthly payments on time.
For people who are rebuilding their credit, a secured card can help establish a history of making good payments that will show up as part of your report.
It also helps protect against identity theft because the only way someone can take money out of your account is by stealing your physical card—and as long as it’s properly safeguarded at home, it should stay safe from thieves.
Free Credit Score
Check out Credit Karma for your free credit report so you can start improving your personal finances.
