Posted on: May 15, 2016
Here are 6 ways to improve your credit score
- Clean up your credit report
Keep in mind that 50% to 80% of credit reports contain errors. It’s a quick win. A delinquent mark on an old credit card you have never used.
For that, you need to goand find out if there is anything wrong about your credit reports. If there is an error on your credit report, file a dispute with the credit agency and they should remove that error quickly. You just need to provide proof of their mistake.
- Become an Authorized User
If you have poor credit score, ask a friend or a relative to become an authorized user on one of their credit cards. Within 3-6 months, this will improve your credit score quickly.
- Open new credit cards
By getting a new credit card, you can increase your total credit limit. By getting more credit, you can decrease your credit utilization ratio. As always, be responsible about your credit.
- Pay your balance on time
There is a simple step: set up autopay to make sure all payments are made on time. If you have multiple credit cards, this will make things a lot easier. You will avoid potential issues in the future.
- Keep your credit utilization rate low
Credit utilization matters a lot (35% of your credit score). To calculate your credit utilization ratio, you need to add up what you owe on all of your credit cards and divide it by the total available credit you have on all your cards. They will also calculate your credit utilization ratio by credit cards.
Ideally, you need to keep your credit utilization ratio below 30% (even better if you keep it below 10%) per card and in total
- Keep your old cards open
If you have an old credit card with a specific bank, keep it open. If you have to pay an annual fee, downgrade it for a no annual fee credit card. This will do the trick.
Ask your questions to our Credit Card Expert at Silver credit, Christophe Ochin.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.