Your credit can change every day – whether it's going up or going down. It’s important you know where your credit stands before you take on new installment (loans) or revolving (credit cards) credit. If your credit isn’t in the best shape, how do you go about improving it? These seven tips can help you increase your credit score quickly.
7 Credit Building Tips
Keep in mind that your credit isn’t going to improve overnight, especially if you’re building credit from scratch. While it may take some time to build or rebuild it, these are seven tips you can use to help increase your credit score over time:
- Double check reports for errors – Make sure all information listed on your credit reports is accurate and up to date. If anything is inaccurate, you should dispute it with the respective credit bureau and have it removed.
- Note where you need to improve – Why is your credit score where it is? Do you have multiple late payments, or do you not have enough credit? Take note of what needs to be changed to figure out ways to improve your credit score.
- Reduce the amount of debt you have – If you have outstanding balances on your credit cards, make sure you try to reduce or eliminate them. Reducing and/or removing debt is one of the fastest ways to improve your credit score.
- Use payment reminders and budget – Have a budget set up for paying all bills and necessities, and consider using payment reminders or automatic pay systems. This way, you don’t forget any important bills.
- Keep paying on time – Once you have a plan of action, it’s time to implement it. Because payment history makes up 35% of your FICO credit score, it’s extremely important you pay bills on time each month. As long as you make timely payments, you should see your credit score improve over time.
- Consider adding a line of credit – You need to be actively using and responsibly managing credit in order to increase your credit score. When you add credit, your credit mix improves, your available credit increases, and you get the opportunity to make on-time payments on another account.
- Have your rent payments reported – Our trusted partner is a service that reports your rent payments to the credit bureaus. This isn't normally factored into your credit score, but it can be. Get started on the path to an improved credit score by signing up right now.
You can always fix your credit, no matter where it stands. It just takes patience and effort, and the dedication to stick to tips like these. If all of this sounds stressful, you can use a credit repair organization to help you get started. However, it should be noted that these businesses aren't going to be doing anything you couldn't do yourself.
Considering an Auto Loan to Help Build Credit?
If you need a car but have bad credit, a subprime auto loan may be just what you need. Not only do you get a vehicle, but you can improve your credit by making all of your loan payments on time each month.
Auto Credit Express can lead the way in your search for financing. We are teamed up with dealerships all around the country that are experts at helping consumers in unique credit situations get financed for new and used cars. Start the process of getting matched with a local dealer today by submitting our easy auto loan request form.