Maybe you want to buy a home or car soon. Either way, having a good credit score helps when it comes to securing a loan with a low interest rate. Learn how you can quickly build your credit so that you have one less hurdle to clear.
Ask About a Higher Credit Limit
Depending on how long you’ve had your current credit card and your overall history, you may qualify for a credit increase. When you boost your credit limit but maintain the same balance, you lower your credit utilization, one of the many factors of your credit score. Look into professional credit solutions NJ for tips on timing your request for a credit limit increase for the best chance of success.
Rather than a single monthly payment, make several payments throughout the month. This tip also ties into your overall credit utilization rate. The lower you can keep that rate as your payment due date approaches, the better for your score.
Check for Credit Errors
Take advantage of free credit reports at least twice a year. When you get your report, look over it carefully for errors and discrepancies. For instance, you may have outdated information on your score, or your score could list an on-time payment as late. No matter how minor the mistake, dispute it and take steps to ensure its removal.
Keep Old Accounts Open
Rather than close old credit accounts you no longer use, consider keeping them open. The length of your credit history impacts your credit score. Also, an old account’s credit limit can help boost your score, but only if you keep the account open. To keep the credit card issuer from closing the account for you, consider using the card every couple of months, making sure that you immediately pay off the balance.
Remain patient while working on improving your credit. Even the quickest tips need time before yielding results.