If your credit rating is lower than you would want, getting a credit card or a bank loan may prove to be difficult. A low credit rating may be the result of many factors, including late payments, high utilization, or an accumulation of negative items from your purchase history. The good news is that you are not helpless. Read on to know 7 ways to improve your credit score fast:
- Make regular mini payments
If your credit card utilization is high, do not let the balance accumulate. Instead, one of the first among the 7 important ways to improve your credit score fast is to make regular mini payments to balance your expenses. Also known as micropayments, they can help reduce your credit card balances, and a lower credit card balance improves your overall credit rating.
- Increase credit limits
The relationship between your payment balance and credit limit influences your credit rating. To improve this rating, you could raise your credit limit, increasing the gap between the payment balance and credit limit. This, in turn, lowers overall credit utilization.
- Fix credit rating errors
The major credit bureaus each offer one free copy of your credit report annually. Accessing this report will allow you to identify errors that could be bringing down your credit rating. For example, a payment may be marked late even though you made it on time. You can then request for these errors to be fixed, which will improve your credit rating.
- Get added on as an authorized user
You can ask someone with a good credit rating to add you on to their card. This makes you an authorized user even if they do not allow you to use their credit card or account. Among the 7 most effective ways to improve your credit score fast, this tip works well for people with very little or no credit experience.
- Keep your credit card open
There are several credit cards you can get even if you have a low credit rating. Even if you do not use these cards, keeping the card open can improve your overall credit rating. A card should ideally be used once in a while and paid off as soon as possible for the best results.
- Aim for a good credit mix
If your credit rating is low because you use only loans or credit cards, you should consider mixing it up. Get a type of credit system that you don’t already have to set up a revolving credit line, as this ultimately improves your credit rating.
- Pay bills regularly
The last tip on our list of 7 ways to improve your credit score fast is to pay your bills and clear your payment balances on time. If you miss a payment, you should call the creditor and explain your situation so that your account is not reported to the credit bureaus.
Using these techniques, you can improve your credit rating significantly.