Paying your bills on time every month is a good way to maintain a healthy credit score, but this action alone will do little to immediately improve your credit score. And while a great credit score won't happen instantaneously, there are measures that you can take to accelerate the building process.
4 Steps to a Better FICO Score
Credit improvement should involve a viable game plan and a willingness to stick to that plan. And knowing where you should start with your plan accounts for half of the battle.
- Pay down credit cards that are close to their limits. Even if you don't fall behind with your payments, using too much of your available credit can hurt your credit score. If you are using more than 30% of any credit line, pay down your balance and watch your score jump up.
- Find any existing errors and have them corrected. Credit report mistakes aren't uncommon, and they can significantly bring down your score. You have the right to request a free copy of your credit report from each of the three primary reporting bureaus (Experian, Equifax and TransUnion) every 12 months. Request your copies and carefully go over each report. If you spot any inaccuracies, report the error(s) to the correct agency.
- Don't be afraid to use credit. If you've had credit problems in the past, you may have sworn off credit card use entirely. And while this will protect you from building credit card debt, complete credit avoidance greatly inhibits credit score growth. Bad credit habits can be broken, and responsible credit card usage will build up your rating over time. If you have damaged credit that is preventing you from obtaining a regular credit card, you can apply for a secured card and, in many cases, eventually transition over to an unsecured line.
- Have your rent payments reported. You could also look into services that report your rent payments to the credit bureaus, like our trusted partner. While your rent payments aren't normally factored into your credit score, they can be if you sign up for something like this. Having your rent payments reported gives your credit score and file a boost.
Another Way to Improve Your Credit
Making regular, timely payments on an auto loan will strengthen your credit substantially. If you're in need of reliable transportation, but are worried that a low credit score will prevent you from getting financed, Auto Credit Express can help. Through our proven and simple process, we can put you back on the road with an affordable auto loan that will also give you the opportunity to rebuild your credit.
Just fill out our fast and secure online application to get started today.