Higher credit score is a vital element in financial life as any lender or financial institution uses it to decide how they will be repaid after issuing you a credit card or a specific sum of money as loan. Poor credit score can be the biggest obstacle when applying for a personal or business loan. Simple to say, credit score is just like a financial resume that tells everything about an individual’s financial history. Excellent credit score can help someone lease an apartment, secure a loan, financing a new home and so on. It is also fact that good credit cannot be built overnight. It takes time, efforts and determination too.
When it comes to build credit from scratch, following fastest ways to raise your credit score can come in handy.
Get a Secured Credit Card with Highest and Affordable Credit Limit
Secured cards are easy to apply for as they come with zero to minimum credit requirements and are issued against a specific sum of money paid by the applicant as security deposit. Apply for a secured card with highest possible credit limit that you can easily handle. Showing your responsibility with bigger credit will definitely boost credit scores in less time. Once credit scores built successfully, applying for unsecured credit card would be a great idea to continuously raise your credit.
Get Added as an Authorized User
Getting added as an authorized user is a superb idea to raise credit scores fast. As credit history of the credit card account holder will also be included onto your credit report, it will show you a responsible credit manager. However, you must have a low credit utilization rate and on-time payment history to build credit fast.
Make Payments on Time
Making payments on time is one of the best ways to raise credit scores fast. Whether it is the credit card payment, loan installment or any other credit payment, be quick to pay before due date. Making one-time payment is also a good idea as making payment after due date or settling an account for less than the agreed amount can have a negative impact on your credit history that will end up with lower credit scores.
Keep Credit Card Balances Low
In order to raise credit scores fast, one should keep the credit card balance under 30% and credit spending limit ideal. It is one of the vital factors considered when credit scores are calculated. Whether you buy watches or other essential stuff online via credit cards, try to keep an eye on the balance of your credit card to make sure it stays comparatively low than your credit utilization limit.
Check Credit Reports to Remove Erroneous or Fraudulent Information
Blunders occur often. Sometimes a credit reports may come with erroneous information and removal of such information can help you improve your credit scores by doing nothing. For this purpose, get your credit reports from the authorities and review them for errors and mistakes. If any errors found, get them right as soon as possible to appear as an individual with excellent credit history and scores.
Avoid Unnecessary Borrowing
Whenever you apply for a loan or credit card, it can take a few of your credit scores off from the reports. That is the reason, getting unnecessary loans can end up with poor credit scores instead of raising. Avoiding new credit accounts is also a best way to build scores because an average age of account also contributes overall length of credit history.
Ask for Increase in Credit Limit
Asking for increase in credit limit of an existing credit card is a perfect way to boost credit scores instead of applying for a new one. Ask the lender to increase the credit limit of a card you already use. When the available credit limit would be high then the line of use, it will help to raise credit scores fast in a short span of time.
Automatic payments, is one of the best ways to have an excellent payment history. It keeps you away from forgotten payments and unpaid bills. Allow your bank account or debtor to make automatic payments at a specific time and date every month. It will create an excellent credit history for you to raise overall credit scores in a best way.