Bad credit can negatively affect your financial wellbeing in a number of ways, but these five tips can help you improve your FICO score quickly. (iStock)
Bad credit can negatively affect your financial wellbeing in a number of ways. It can prevent you from saving money on monthly loan payments due to high interest rates, and it can also prevent you from using a line of credit on loans such as a mortgage, car loan, personal loan, credit card, or student loan.
However, loan professionals can help you improve your bad credit score or even achieve that coveted excellent credit score. In addition to helping you pay bills on time, build a good payment history, or keep credit utilization down, Experian Senior Director of Consumer Education and Advocacy Rod Griffin offers these five tips to help you improve your credit score quickly:
- Use the Experian Boost to add points instantly
- Open a secured credit account
- Become an authorized user
- Get a co-signer for a small personal loan
- Let us notify you of your rent
HOW YOUR CREDIT VALUES ARE AFFECTED BY HARD AND SOFT INQUIRIES
To check your rates and see what rates you can get on a personal loan, visit Credible to pre-qualify in minutes.
Use Experian Boost to add points instantly
Experian Boost allows Americans to share their bank accounts with the credit bureau in exchange for an increase in their score when Experian reports their positive payment history. The credit bureau will add this payment history to your report, which will increase your FICO score, VantageScore, and other credit scores.
This can help improve your credit score and bring you closer to achieving great credit. It can also create a credit history for the credit invisible who have never used credit and therefore don’t have a score.
For those with thin credit files – five points or less on their credit report – or with credit points under 680, Experian Boost increased the score by an average of 19 points, Griffin said. Those with higher credit scores and longer files saw an average increase of 12 points from Experian Boost.
Open a secured credit account
A secured credit card can help you build up your credit by backing your credit card with something rather than taking out an unsecured line of credit. You can usually back it up with a savings or checking account, or you can put a small amount of money to borrow it. That way, you can start building or rebuilding your credit score. To view secure credit card options, visit Credible to compare terms and cards.
Become an authorized user
One of the easiest ways to improve your credit score is to become an authorized user of a credit card. If you have a trusted friend, family member or partner, they can simply add you to their card as an authorized user and immediately add them to your credit profile with their history.
WHY IS IT IMPORTANT TO HAVE A GOOD CREDIT?
Many credit cards do not allow joint use, but you can add authorized users.
Get a co-signer for a small personal loan
Lenders are more willing to lend money when you have a co-signer with a positive credit history. By signing the loan, you agree to pay the loan in case you are unable to do so. Adding a personal loan can also improve your credit mix, which is good for your score as well.
HOW TO USE A PERSONAL LOAN TO INCREASE YOUR CREDIT SCORE
However, it is important to keep in mind that if the lead applicant misses a payment or defaults on the loan, the co-signer’s creditworthiness will also have a negative impact. Check out Credible to compare multiple personal loan rates and see if you qualify.
Let us notify you of your rent
Whether you are renting in a single-family home or in a large residential complex, you can speak to your landlord about rental information. This could help you build a positive credit history.
“We have seen almost 100% of the time that a person tries to create a credit history, [reporting rent] will help them, “Griffin said.” And, in the vast majority of cases, it will help a person improve their creditworthiness. “
YOUR CREDIT SCORE COULD TAKE A STRIKING AFTER RECEIVING A MORTGAGE BUT YOU NEED TO WORRY
Final thoughts
The tips listed above are just a few of the ways you can quickly improve your credit score. Consumers can also reduce debt to keep credit utilization down or sign up for a credit monitor service to keep an eye on their credit report and protect themselves from identity theft.
“Improving your credit score is really about taking care of your credit report,” Griffin said.
Contact Credible to take control of your credit history today and check out options like personal loans that can help you pay off debts or create a credit history to quickly improve your credit score. Credible can also help with credit monitoring, so you can spot errors in your credit report and protect you from identity theft by sending fraud alerts in the event of unusual credit inquiries or other suspicious activity.
Do you have a finance-related question but don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.
source https://collegeeducationnewsllc.com/need-to-boost-your-credit-score-quickly-use-these-5-tips/
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