Did you know that 53% of Americans are turned down for things like credit cards and loans due to bad credit? Based on this statistic alone, there’s a very good chance that you’re one of these people.
If your credit score isn’t so great, it might feel hopeless at times. To achieve a milestone, you need good credit. And to get good credit, you need to prove yourself, which can be hard to do at times.
But not all hope is lost. In fact, there are ways to raise your credit quickly so you can get back on track with things.
Interested in hearing more? Then read on for some helpful information!
Before we get into how to raise your credit score, let’s first define the different brackets. Because not many people understand credit scores, they might think they have a good score when in fact, they have a poor one, or vice versa.
So what is a good credit score? It’ll depend on the model you’re looking at, but generally speaking, here are the ranks:
- Excellent: over 800
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: below 580
Now you should have a better understanding of the credit score range, so you know where you stand and where you need to get to. With that said, here are some quick ways to raise your credit score so you open up some opportunities.
Check Your Credit Score First
First off, you should check your credit score. “Why should I check my credit score,” you might ask. Well, it might be better or worse than the last time you officially requested a report, so you need a recent score to have the most accurate information possible.
Plus, you can always request a free credit score check, so it really doesn’t hurt to double-check. In fact, you should be doing this regularly, so if you haven’t been, it’s a good time to start.
It’s rare, but mistakes do happen on your credit reports. Also, if you stay on top of your reports, then you’ll quickly notice any fraud in addition to mistakes.
So a great way to quickly raise your credit score is to get any errors corrected. If you notice any, report them to the credit bureau. They can be fixed as quickly as 1 month, which will improve your credit score!
Consolidate Your Debt
Do you have multiple credit cards, all with high balances and high APRs to boot? Then it can be stressful thinking about all that debt. Not to mention, it can be difficult to juggle payments for all cards.
What you should do is consolidate your debt into 1 balance transfer card. Usually, you’ll be able to take advantage of an introductory period where there is 0% APR. Use this time to work hard at paying off the entire debt so you don’t have to deal with high interest rates after the introductory period is over.
Not only does this allow you to eliminate high APRs, but it’s also easier to make payments on time when you have just 1 monthly payment instead of 5. You should also enable autopay if it’s available.
Late payments will make your credit score drop, while paying on time consistently will raise it. So this should put you back on track!
Get Your Credit Limits Raised
The more credit you’re using up in a credit line, the lower your credit score is. So if you can get your credit limits raised, this will work in your favor. You won’t add to your balance, but because your credit limit is higher, your overall credit utilization is lower.
You should only do this if you can resist temptation and won’t use up that extra credit. For most people, having that available credit is too alluring and they end up putting themselves into more debt.
Ask to Be an Authorized User on Someone Else’s Account
Do you have a friend or family member who’s built up good credit of their own? Then consider asking them to be an authorized user on one of their accounts. If they do this, your own credit score will jump up since you’re now sharing in their good credit history.
Of course, this will take lots of trust, so you should only ask someone you’re close with. Do note that they don’t even have to give you access to their account for you to benefit, so they can always just add you and keep it at that.
Keep All Credit Lines Open
You might have a credit card or two that you don’t use, so you might be thinking of closing those credit lines. But did you know that closing accounts can hurt your credit score? This is because once you close them, your credit utilization ratio goes up.
So keep all of your credit lines open. If you’re afraid of temptation, cut up your cards so you can’t use them.
Work With a Credit Repair Company
Maybe you have no time to do all the above, or maybe it just sounds like so much work that it’ll stress you out. Whatever the reason, maybe you’d rather the pros help you fix your credit score.
In that case, you can work with a credit repair company. These experts will evaluate your financial situation and put together a personalized plan to make your credit score skyrocket in no time.
If you’re interested in these services, find out more to see how you can choose a company that’s not only reputable, but effective at their jobs.
Raise Your Credit Score With Our Tips
When your credit score isn’t the best it could be, you can feel disheartened at times, especially if you keep getting refused for loans and credit cards.
But what you should realize is that credit scores aren’t static! With a little bit of hard work and smart decisions, you’ll be able to break free of that credit score and build a much better one that’ll result in better opportunities for the future.
To learn more about finances, make sure you read our other blog articles too!