Looking for tips on how to increase your credit score fast? Read on to find out how I managed to get into the 800+ credit club after having zero credit rating!
When I first moved to the United States, my credit rating was zilch. I had never lived here before, and unfortunately, my credit rating from Australia didn’t carry over (which can be good or bad, depending on your circumstances!) My husband has always been great with money and he had an excellent credit score (he’s been in the 800+ club for years.)
Naturally, I wanted to build up my credit, too, so I started doing some research on how to improve your credit score. In the past few years, I’ve managed to drastically increase my credit score – I’m now in the 800+ credit club from having no credit history at all.
Listed below are the steps I took to increase my credit rating. These easy tips to improve your credit rating can be used by anyone who is trying to improve their credit score.
How to Increase Your Credit Score Fast
1) Keep track of your credit score with Credit Sesame
The first step towards improving your credit is actually knowing what your credit score is, and keeping track of it. I like Credit Sesame because it’s FREE to join and you’ll be able to find out your credit score and keep track of it, along with receiving a credit report card, monitoring, and alerts.
Unlike some other credit reporting and monitoring sites, Credit Sesame is totally free (you don’t even need to enter your credit card details.) Here’s the link to get your free credit report.
2) Dispute any errors
Once you receive your credit report, you should go over it with a fine-toothed comb. Mistakes happen, and you may find errors on your credit report. If you do, don’t just let them slide – make sure you dispute them. Fixing small errors can make a big difference on your credit score.
3) Pay all of your bills on time
It’s super important that you pay all of your bills on time if you’re trying to improve your credit score. Even one late payment can knock up to 100 points from your credit rating, which can be the difference between getting a loan approved or denied. Our system is simple – as soon as we receive a bill in the mail we write a check (whether we’re sending it immediately or not.) Writing the check, putting it an envelope and sticking it on the fridge means that there’s no way it’s going to be forgotten – it’s right there in front of us. We also have a direct debit set up for a lot of our bills, which makes it even easier.
4) Get a credit card (but don’t use it too much)
If you don’t have a credit card, this can be a good way to start building up your credit score. One of my favorite stores is TJ Maxx, and I have a store credit card with them. A few years ago my husband and I needed new suitcases for a trip to Australia, so we went to TJ Maxx to buy some. Signing up for a store credit card that day gave me three bonuses – I saved 20% on my suitcase purchase, I receive store gift cards based on my purchases, and having a credit card helped improve my credit rating. However, make sure you don’t carry a balance – in fact, it’s a good idea to keep the amount you put on your credit card to a maximum of 30% of your limit (the lower, the better.)
5) Pay off your credit cards – but don’t close them!
If you already have credit cards, you should be making an effort to pay off any balance you’re carrying – not only will this save you lots of money (from the high-interest rate most credit cards have) – it will also help to raise your credit rating. But once you’ve paid off your credit card, don’t close the account. The length of time you’ve had your credit card also plays a part in your credit rating, and closing the account will cause your credit to drop.
So there you have it – 5 easy ways to improve your credit. I used (and continue to use) these methods and they’ve definitely helped me. Do you have any other tips on improving your credit? If so, I’d love to hear them.
Do you have any other tips on improving your credit? If so, I’d love to hear them.
Hi I’m Ana. I’m all about trying to live the best life you can. This blog is all about working to become physically healthy, mentally healthy and financially free! There lots of DIY tips, personal finance tips and just general tips on how to live the best life.