6 Ways to Improve your Credit:
- Credit Usage: The portion of your credit limits you’re using at any given time is called your credit utilization. Use less than 30% of your limit on any card, and lower is better. The highest scorers use less than 7%
- Request greater credit limits: When your credit limit increases while your balance stays the same, your overall credit use immediately decreases, which might help your credit. You have a good chance of receiving a bigger limit if your income has increased or if you have added more years of good credit history.
- Ask to be added as an authorized user: if a family member or acquaintance has a credit card account with a large credit limit and a solid track record of timely payments. The credit limit on the account can help your utilization because it is added to your credit reports. Authorized user status, often known as “credit piggybacking,” enables you to benefit from the principal user’s successful payment history. Your credit might increase even without using the card.
- Dispute credit report errors: A mistake on one of your credit reports could be lowering your score. You can immediately improve your credit by disputing inaccuracies on your credit report.
- Use a secured credit card: A secured credit card is another way to establish or repair your credit. This kind of card is secured by a cash deposit, which you must pay up front and which is usually equal to your credit limit. It functions just like a regular credit card, and timely payments help establish your credit.
- Handle accounts in collections: By paying off an account in collections, you eliminate the risk of being sued for the debt, and you might be able to convince the collection agency to stop reporting the debt after you do. If collection accounts on your credit reports are inaccurate or too old to be included, you can also get them removed.