5 Expert Recommended Methods to Raise Your Credit Score

If you are researching how to raise your credit score, regardless of the reason, we give you major kudos. Perhaps you are trying to repair a credit report that was damaged due to years of poor financial choices. On the other hand, maybe your credit score is fair and you’re getting ready to make a big change in your life that will be much easier with good to excellent credit, like buying a new house or starting a family.

You should always strive to have the best credit score possible, but many people experience dips in their credit score just as we experience ups and downs in life. Such is the nature of the beast. In order to raise your credit score effectively, we’ve gathered some expert-recommended tips that can make a significant difference in your overall credit report and number.

Before making any changes, you’ll want to make sure you pull your own credit report and have a good look over everything listed on it. Comb through each credit report from the three main credit reporting bureaus (Equifax, Experian, and TransUnion) very carefully to check for any mistakes that may have been made like debt that is being reported that doesn’t actually belong to you.

You can contact the reporting agency about any errors on your own or you can work with a New Jersey credit repair attorney to help you make the contact and clear up any errors that may be unnecessarily dragging your credit score down.

After you have determined that there are no errors currently weighing down your score, take the following expert-recommended steps to boost your score higher than ever before:

Pay monthly credit card bills before their closing dates

Even if you are managing to pay your credit card bills in full each month, you may be paying after your lender has already reported your balance to the credit bureaus. This will make it seem that your balance is high every month. What you must do is contact your credit card company or lender and ask when they make their monthly credit bureau reports. Henceforth, make your monthly payment well in advance of that credit card company’s closing date so that your balance will be reported to the bureaus as zero.

Create a debt paydown strategy

In order to optimize your credit utilization ratio (which means keeping it lower than 30% but optimally under 10%), work hard to pay down the balances on your card(s) that have the highest balances first.

Pay your debts every time you get paid

Most people pay their bills once a month, but there is a better way! Since it is common practice for most employers in the US to pay their workers on a biweekly basis, make it your new practice to make two payments on your credit card debt per month. Pay your monthly minimum as soon as you receive your first paycheck of the month, and then pay a little bit more with your second paycheck of the month. This will nudge your balance down much more quickly than only making one payment per month.

Lower your credit utilization ratio by requesting a higher credit limit

Although this is something that should not be attempted if you don’t trust yourself to stay within your own self-imposed spending limits, requesting a higher credit limit from your credit card company can lower your overall credit utilization ratio. Naturally, this will only work as long as you refrain from racking up anymore debt.

Consolidate multiple credit cards from the same issuer

With the ultimate goal of keeping your total credit limit the same, if you have more than one credit card with the same institution, consider requesting a consolidation of those cards. The goal of this is to increase the average age of your overall revolving credit, so request that your newer card be combined into the older card. This will eventually eliminate that newer card from your credit history and your debt will have an older overall age, which will help improve your credit score.

 

Image: “5” by Steve Bowbrick – licensed under CC by 2.0

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