Need to increase your credit score fast? Use these 5 tips
Having bad credit can negatively impact your financial well-being in a number of ways. It can prevent you from saving money on monthly loan payments due to high interest rates, and it can also prevent you from drawing down a line of credit for loans like a mortgage, car loan, mortgage, car loan, loan personal loan, credit card or student loan.
However, credit experts can help you improve your bad credit or even achieve the coveted excellent credit score. In addition to paying bills on time, building a good payment history, or keeping credit usage low, Rod Griffin, Experian’s senior director of consumer education and advocacy, offers the following five tips for quickly increase your credit score:
- Use Experian boost to instantly add points
- Open a secure credit account
- Become an authorized user
- Get a co-signer on a small personal loan
- Have your rent declared
HOW YOUR CREDIT RATING IS IMPACTED BY HARD AND GENTLE INQUIRIES
To check your rates and see what rates you could get on a personal loan, go to Credible to pre-qualify in minutes.
Use Experian Boost to instantly add points
Experience boost allows Americans to share their bank accounts with the credit bureau in exchange for an increase in their score when Experian reports their positive payment history. The credit bureau adds this payment history to your report, which will subsequently increase your FICO, VantageScore, and other credit scores.
It can help you improve your credit score and bring you closer to getting great credit. It can also establish a credit history for invisible credit, those who have never used credit and therefore have no score.
For those with thin credit records – five items or less on their credit report – or those with credit scores below 680, Experian Boost increased scores by 19 points on average, Griffin said. Those with higher credit scores and longer files saw an average 12 point increase thanks to Experian Boost.
Open a secure credit account
A secured credit card can help you build credit by backing your credit card with something, rather than taking out an unsecured line of credit. You can usually back it up with a savings or checking account, or deposit a small amount of money to borrow. This allows you to start building or rebuilding your credit score. To view secure credit card options, visit Credible to compare terms and cards.
Become an authorized user
One of the easiest ways to improve your credit score is to become an authorized user of a credit card. If you have a friend, family member, or trusted partner, they can simply add you as an authorized user to their card, instantly adding it and its history to your credit profile.
WHY IS IT IMPORTANT TO HAVE GOOD CREDIT?
Many credit cards will not allow a joint application, but will allow you to add authorized users.
Get a co-signer on a small personal loan
Lenders will be more willing to lend money if you have a co-signer with a positive credit history. By co-signing the loan, they agree to repay the loan, if you are unable to do so. Adding a personal loan can also improve your credit mix, which is also good for your score.
HOW TO USE A PERSONAL LOAN TO INCREASE YOUR CREDIT RATING
However, it is important to keep in mind that if the principal applicant misses a payment or defaults on the loan, it will also have a negative impact on the credit of the co-signer. Check out Credible to compare the rates of several personal loans and see if you qualify.
Have your rent declared
Whether you are renting in a single-family home or in a large apartment complex, you can chat with your landlord about declare your rent. It could help you build a positive credit history.
“We have seen that in almost 100% of cases, if a person tries to establish a credit history, [reporting rent] will help them do it, ”Griffin said. “And it helps, in the vast majority of cases, a person improve their credit rating. “
YOUR CREDIT SCORE MAY TAKE A SNAP AFTER YOU GET A MORTGAGE, BUT DON’T WORRY
The tips listed above are just a few ways to improve credit scores quickly. Consumers can also pay off debt to reduce credit usage, or sign up for a credit monitoring service to keep tabs on their credit report and guard against identity theft.
“Raising your credit score is really about taking care of your credit report,” Griffin said.
Contact Credible to take control of your credit score today and learn about options like personal loans that can help you pay off debt or build a credit history to quickly improve your credit score. Credible can also help you monitor credit so you can spot errors in your credit report and protect yourself against identity theft by sending fraud alerts for unusual credit inquiries or other suspicious activity.
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