I was young the first time I learned about credit. I was probably 16 and I wanted to finance a car. Unfortunately, I was too young to do it on my own. So, when turned 18, I thought I could finally finance a car. Imagine my surprise when the bank told me, I had no credit and they couldn’t finance me. It was so disappointing. Since then I have learned a lot about credit scores like, how to raise your credit score fast and what not to to your credit.
If you’ve vowed in 2019 to raise your credit score, these simple tips will help you raise your score and help you get to the credit score you want.
How to Improve Your Credit Rating
Use Credit Cards
Credit cards can be both good and bad for your credit score. If you are using credit cards as a source of free money, you probably don’t want to use this technique because you may find yourself getting into trouble and actually lowering your credit score.
When you are using credit cards to improve your credit score, you need to be sure to carry only small balances and pay them off as soon as possible.
Whenever the three main credit companies see you paying off your credit cards on time, your credit score should raise. Plus, credit card companies will up your credit card limits and consider you more credit-worthy.
Pay Bills on Time
One of the worst things you can do to your credit score is not paying bills on time. Any payment made 30-days late is usually reported to the three major credit companies and will be considered a mark on your credit report. Any negative marks on your credit report will automatically lower your credit score and lower your credit-worthiness to most credit lenders.
Limit Credit Inquiries
One of the biggest reasons your credit score goes down is because of credit inquiries. If you find yourself applying for multiple credit cards and loans, these can negatively impact your credit score.
Loan companies will also use this as a reason to deny your credit loans when applying for credit.