4 Tips to Quickly Boost Your Credit Score
A bad credit score can be bad news when it comes to getting a lease on a new apartment, taking out a mortgage to buy a home or attempting to get an auto loan to finance a new car. Most lenders only like issuing loans to clients with good credit scores, and in recent years they’ve become even more meticulous about their qualifications.
If you have credit problems, you’re likely to have your request for a loan denied, or accepted, but only with a very high down payment and relatively high interest rate.
You may have a bad credit score for a variety of reasons, and honestly, it’s perfectly normal to have a less than stellar score at some point of your life. However, a long term bad credit score can cause major problems for you, so it’s essential that you take steps to improve your score as soon as it becomes an issue.
Follow these four simple but effective steps to boost your credit score fast:
1.Don’t Declare Bankruptcy
If times have gotten so bad for you financially that you’re considering declaring bankruptcy, don’t forget to consider how this will affect your credit score. Filing for bankruptcy can wipe out credit card and various other debts, but it will also plummet your credit score, which will take years to recover from. Before you file, look into strategies for avoiding bankruptcy first.
2.Always Pay the Minimum
Just because you can’t afford to pay your credit card balance in total each month doesn’t mean you should also skip paying the minimum payment. Your credit score will be very negatively affected by failing to make the minimum payment on a month to month basis – so make sure you do this. The chances are your minimum payment isn’t even a huge amount, making it even more essential that you make this small payment each month to save your credit score rating.
3.Avoid Maxing Out Your Cards
One fast way to damage your credit score is to max out your credit cards. A healthy credit score is often maintained by someone who regularly pays off their debt and never has a balance anywhere near their limit. As a result, going up to or over your credit cards limit will result in your credit score dropping. Avoid maxing out your card by spending wisely, always monitoring your credit card balance and having an emergency fund in savings.
4.Take Out an Installment Loan
If you can afford it, put an installment loan on your credit card. Paying off an installment loan on time and successfully will reflect extremely well on your credit score and can also make it much easier to get approved for similar and even larger loans in the future. Maybe you could take out a small personal loan just for the intentions of boosting your score, or if you’re looking to buy a car you can kill two birds with one stone by putting your auto loan on your credit card.
Use our above tips to boost your credit score fast and reliably. Good luck!