The fact is that your credit has a huge impact on many different aspects of your financial well-being. It is therefore crucial that you do everything possible to raise your score efficiently. The better your credit is, the easier it will be for you to obtain that important loan. Whether you want to buy a car or a house, this is something that will come up. This article can provide you with a few simple but effective ways to get your credit on track.
- Look at Your Credit
The very first thing you need to do is to take a close look at what your credit is like as a whole. This means getting a copy of your report from each of the three major credit bureaus, including Equifax, TransUnion, and Experian. You can get a free copy of your report from these companies for free once each year. This will give you a good idea as to how much work you have ahead of yourself.
- Obtain a Secured Credit Card
Getting a secured credit card can help you out a lot with improving the overall state of your credit. You will have to put down at least three or four hundred dollars as a deposit. This amount basically serves as your credit limit. If you pay your bills on time consistently, you can expect a significant bump with your credit. It shouldn’t take long before you start noticing a positive change in your score. There are lots of these cards to choose from, so make sure that you do some research before deciding on one to get.
- Become an Authorized User
Another good way to build up your credit is to get added to a friend or family member’s credit card as an authorized user. If they have good credit, there is a chance that you can benefit from this in a big way. Just being associated with their credit card can help you increase your score quite a bit. You won’t have to make any payments, but your credit will go up steadily as long as you are listed on their card.
- Make Your Payments on Time
Simply paying your bills on time can do a lot for your credit as a whole. Even a single late payment on a bill can cause a significant black mark on your credit report. It will also take your score down a little bit, which is the last thing you want. Make sure that you know when all of your bills are due so you don’t forget to make a payment on anything.
- Don’t Submit too Many Loan Applications at once
If you are trying to get a loan or even just a credit card, you shouldn’t submit a lot of applications within a very short period of time. This can harm your credit quite a bit, so you will need to keep that in mind. Each credit check counts as a “hard inquiry”, which then shows up as a negative item on your report. The more applications you submit, the lower your score will sink.
- Sign up for Automatic Payments
You should make a point of signing up for automatic payments on as many different bills as possible. This will eliminate the possibility of forgetting to pay for any recurring expenses, such as your cable bill, utilities and other things. Since late payments can do a lot of damage to your credit, you’ll need to keep this in mind. Most companies allow for automatic payments on the due date, and it’s something you should take advantage of.
- Find a Co-Signer
Getting an unsecured credit card is a very effective way to establish one’s credit, but it can be difficult if your score is too low. A co-signer can significantly boost your chances of getting approved for one of these cards. Take the time to find someone you know with good credit. You also need to make certain that you use your card responsibly once you have it. It is crucial that you make all of your payments on time. Millions of people throughout the U.S. are in deep credit card debt because they simply got carried away.
There is no question that having good credit is important these days, so it only makes sense that you do everything possible to repair yours. The more positive credit you establish, the higher your score will be. Make sure that you take the time to consider all of these options so you can use them to your advantage. Achieving a truly high credit score can take some time, but following these steps will help you get there faster. Maintaining your credit is a lifelong responsibly, and it is well worth the effort.