We all aspire to at least make it to the 700 range when it comes to credit score. A lot of us are just teetering along that 10-point mile trek to get there. What will make the scales tip in your favor? Try these 7 easy ways to raise your credit score in just a few months:
Get Credit Karma
Credit Karma or any free 3rd-party app will allow you to manage and monitor your credit score every single day without lowering or affecting it at all. You can see all reported open accounts, amounts owed, credit card utilization and they even give you insider tips on how to raise your score.
Download the app and check it every single day if you’re really serious.
Pay Down Any Open Balances You Can to Less Than 10-20%
Is there a credit card that you use most? Do you ask for an extension for your car note almost every month?
Stop and figure out a plan.
If you have a high balance on your credit card, make bigger payments to get your utilization down to 10-20%. Figure out the date that your credit card reports to the credit bureaus every month and be sure to pay down your credit card to below 20%. This will help keep your credit score in good shape.
Remove a Recent Late Payment
Removing a late payment will take persistence. There are a couple of ways to request a removal.
The most common and effective way is to call the original creditor and ask for a goodwill adjustment. If they resist, you can try negotiating the removal of the late payment by agreeing to sign up for automatic payments. For other late payments, you can file a dispute against the late payment for inaccuracy.
Remove a Collection Account
If you have a collection account on your credit report, your goal isn’t to just pay it off. You need to get the collection removed. Never, just outright pay a collection. A paid collection usually doesn’t help improve your credit score at all.
Instead, call to negotiate a “pay for delete” and even send it in writing to the collector. Only when you have a written agreement should you pay a collection account, and then work on getting the account deleted completely off your record.
Ask For a Raise On Your Credit Limits
If you have a credit card, go to the creditor and ask them for an increase. If you’ve been with a bank for longer than 5 years, then you have an even better advantage. Let them know you have had a good track record thus far and would like a slight increase.
If you get any push back, ask what the requirements are, be sure to follow them, and try again in 2-3 months.
Start Using Inactive Credit Cards
Do you have a credit card that's been sitting at a $0 balance?
Start making small purchases throughout the month on it. This can be as small a purchase as gas. Be sure to pay the balance off or down to 10-20% of utilization. Remember, it isn’t enough to just pay off the entire balance right after you spend. Wait until there is an actual balance statement out to be paid, then pay it off.
Get Credit
Having one credit card isn’t going to cut it these days. I know it sounds ridiculous. Why get more debt to raise your credit score?
The thing is, if you do it correctly, it will benefit you in the end. Increasing your credit means more lenders trusting you. The more lenders trust you, the higher your score will go.
So, go ahead apply for another credit card with a limit of at least $1000, once approved watch your credit just soar!
Tia Muhammad, BS, is an award-winning freelance content & media creative, copywriter, blogger, digital designer, and marketing consultant. She owns the boutique content and digital media company, jackieGLDN|studio.
