Your credit score can seem like a meaningless number that has a lot of influence over your life. You need a good credit score to borrow money, rent an apartment, and even sign up for a new phone plan. Thankfully, you’re not stuck with a bad score. Here are five simple ways to increase your credit score.
Understand What Affects Your Credit Score
The first step is to know what impacts your score. The biggest factors that impact your score include your payment history, credit availability, and your length of credit history. Start with these areas and gradually build up.
Build a History of On-Time Payments
The easiest way to get an immediate credit score bump is to simply pay your bills on time. Think of your credit utilization almost like a line graph. One missed payment and your score plummets. So make sure you have some system in place to never forget your bills.
Lower Your Credit Card Balances
Another way to beef up your payment history is to get those positive marks up is reducing your credit levels.
Those high current credit accounts can lower your credit potential drastically. You should aim for a ratio of less than 30 percent each month, so keep those levels as low as possible.
Be Careful With New Credit Applications
Each time you request credit, a hard inquiry is noted on your score, which leads to a lower credit number. But think of the long-term impacts as well. Don’t apply for multiple credits all at once. Focus on managing the credit you have first.
Consider a Phone Contract Without a Credit Check
Getting declined for a phone contract is so embarrassing. But you should be well aware of how your history impacts your access to those new accounts. There are providers who offer a phone contract without a credit check.
No credit check phone plans are a great option if you’re worried about your score, or you’re working to improve it.
Keep Your Credit History
Did you know that your length of credit can influence your credit score? It totally counts. So don’t rush to close those old accounts. A great way to keep cards open, while still using new accounts, is to use your old credit cards for a small purchase or subscription charge that automatically charges to the card that never closes.
Your credit score isn’t going to improve overnight. It takes time and effort to get that credit potential up. But by following these simple tips and seeking a phone plan without a credit check, you’re well on your way.
Jessica has a flair for writing engaging blogs and articles. She enjoys reading and learning new things which enables her to write different topics and fields with ease. She also strives to break down complex concepts and make them easy for anybody to comprehend.
