Good NestingTo some, a credit score is nothing but a number. But to others who understand how credit works, their score is a significant number that can positively (or negatively impact) their lives in many ways.
What can a solid credit score do for you? It can help you:
- Get approved for credit cards, so you aren’t limited to buying things only when you have sufficient cash.
- Get a loan to consolidate debt, buy a car, purchase a home, etc.
- Get into an apartment, as many landlords check credit to ensure they won’t have problems with late or missed payments.
- Get a job, as some employers check credit to determine a prospective employee’s level of financial responsibility.
If your credit score is low, the bad news is that getting credit cards or loans or getting approved for an apartment or hired could be tough right now. The good news is that it doesn’t have to remain that way, as you can improve your credit score quickly by doing the following.
Get Rid Of As Much Of Your Existing Credit Card Debt As Possible
If you have a lot of credit card debt, paying down as much of it as possible is probably the best way to increase your score quickly. By lowering your debt, you expand your available credit. You also lower your credit utilization ratio (you want it below 30 percent), which accounts for 30 percent of your credit score.
Unfortunately, many people don’t have enough cash to use this method to boost their credit scores quickly. If that’s the case, don’t fret, as there are other ways to get that boost.
Increase Your Current Credit Card Limit
Another way to lower your credit utilization ratio and hopefully get it under 30 percent is to ask for a limit increase on your current cards. Call your provider and ask for the increase. If you’ve made on-time payments, they will likely say yes without charging you a fee, checking your credit, or even requiring you to fill out an application to complete the favor.
Open Another Card
Increasing your current card limit is one way to lower your credit utilization ratio. Another is to apply for a new credit card. To make the most out of this method, try to get a credit card with a zero-percent introductory APR that you can use to transfer a balance from one of your high-interest cards. Doing so will save you cash.
Report Your Rent Payments
A service like RentReporters can ensure your on-time rent payments get reported to the bureaus. Since the average RentReporter user sees a 40-point boost in 10 days, this may be your best move for increasing your credit score quickly.
Avoid Missing Payments
It may sound obvious, but not missing payments in the first place is the best way to ensure a high credit score. Payment history accounts for the biggest chunk of your credit profile (35 percent).
