Improving your credit score or starting out with virtually no credit score is hard. A lot of people get discouraged especially at the beginning due to the lengthy and complicated process of building your credit capacity. However, there are ways for you to improve your credit capacity starting from scratch and building up from there.
How fast can you raise your credit score?
Although improving your credit score generally takes time, there are a few ways to speed it up. However, it might still take a few years for you to have enough money to buy a house or an expensive car.
Best ways to improve credit score:
1. Exercise your purchases
Small purchases like gum can be done on the credit card, this shows activity.
2. Pay on time
This is the most important way to improve credit score. Make sure to never miss your payments as this could hurt your total credit capacity over time.
3. Buy things you can pay right away
Of course, later on, you might want to buy a house or a car, however, for now, keep your purchases smart just to exercise your credit capacity even more. You can even do purchases for your friends and have them pay you while you use your card.
4. Get small loans
Borrowing small amounts and paying on time is a great way for the bank to see that you are a good payer. Maybe borrow enough for the new fridge you need or something relatively small.
5. Pay off debts
Make sure to pay off all existing debts as timely as possible. While other debts might be too big to pay off immediately, make sure to still try to pay them off.
6. Don’t shut down unused credit accounts
The length of your account still affects your credit score. Don’t close it down.
7. Don’t inquire too much for new credit
The more inquiries you make for a new credit, the more this could hurt your credit score.
8. Dispute any errors
Errors might pop up every once in a while, it is important to dispute them. This shows you are paying attention.
9. Become an authorized user
For those that need to make moderately big purchases, try being an authorized user of let’s say a relative in order to make that purchase through credit.
10. Be patient
Building your credit score takes time and the key really is to avoid mistakes instead of being aggressive on finding quick fixes.
These ways to improve credit score are only effective if acted upon. Although it might not be tomorrow, in due time, your credit capacity will improve.
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