Do you need to improve your credit score? Well, you’re not alone; about 16% of Americans have bad credit.
With bad credit, you won’t be able to take out large loans or purchase items such as a car or a house. Although, you can always improve your credit score.
If you’re unsure where to start, don’t worry; with this guide, you can find out! From making payments on time to spending less, you can learn how to get good credit quickly and efficiently.
Now, are you ready to get started? Here’s a quick look at a few ways to build good credit:
Make Payments on Time
One of the easiest ways to increase your credit is to make payments on time. After all, about 35% of your credit score is built off your payment history.
Here’s why: when you use your credit card and pay it off in a timely manner, you construct a history of trustworthy credit. This displays to the credit lenders that you are responsible enough to pay back large amounts of money, lending them to increase your score.
So if you want a higher credit score, start paying your credit card on time more regularly. You can even enroll in your credit card automatic payment system or set up a reminder via your phone’s calendar to remind you to pay on time.
Spend Less on Your Credit Cards
Now, you might think, spending doesn’t have much to do with your overall credit score. However, you couldn’t be more wrong; after all, credit utilization or the amount you use your credit card is another factor on which your credit score is based on.
In fact, credit lenders want to see customers who spend responsibly that way; they know they can pay back what they own quickly and on time. So, customers you have below a 30% credit utilization usually have a high credit score. Try and cut your spending in half if you’re spending 50% or more of your available balance, and chances you’ll see a direct increase in your credit score from your lack of spending.
Avoid Taking Out New Lines of Credit
Instead of applying for store credit cards, try and avoid taking out new lines of credit. Every time you apply for a new line of credit, the credit lenders receive what is known as a hard inquiry.
In fact, too many hard inquiry notices can naturally lower your credit score. Plus, taking out new lines of credit decreases the age of your credit history, which can cause a serious drop in your credit score. So, take these credit restoration tips to heart and only take out a new line of credit when it’s needed.
How to Get Good Credit Today
If you have bad credit, it’s not too late to improve your credit score. All you have to do is make sure you pay your payments on time, spend less, and avoid taking out new lines of credit. Once you do that, you’ll see a spike in your credit score.
So what are you waiting for? Try these credit-saving methods today.
Now, for more information and in-depth tips on how to get good credit, visit our website. We look forward to helping you!