How to Improve Your Credit Score: 4 Simple Tips

Improving your credit score is a crucial step in achieving financial stability. Just like getting a bruise from a shin kick, losing points from your credit score can be a painful experience. However, with the right strategies, you can revive your credit score faster. In this article, we will explore four tried-and-tested methods to help you achieve that.

Simple Steps To Improve Credit Score

Make Regular Payments, But Twice a Month

Even if you pay your credit card balances in full each month, using too much of your available credit can harm your scores. A simple yet effective way to mitigate the damage is to make two payments each month. The first payment, just before the card's statement closing date, reduces the balance reported to the credit bureaus. The second payment, just before the due date, ensures you don't incur interest or late fees on any pending charges. By following this strategy, you can start to repair your credit score quickly and efficiently.

Dispute Old, Small Collection Accounts

Check your credit reports for old, small collection accounts, such as forgotten parking tickets or medical bills. If you find any, dispute them with the relevant collection agencies. The agencies may not respond to the investigation attempts, especially as the accounts approach the seven-year mark when they would have to be removed from your credit reports anyway.

Leverage an Authorised User's Good Credit History

Another person's good credit history can be imported into your credit bureau files to boost your scores. You don't even need to have access to the account; being an authorised user in name only can work just as well. Some credit card companies allow this importing if you're a relative, so check ahead of time.

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Pay Off Your Credit Cards with a Personal Loan

Paying off your credit card balances not only reduces your debt but also widens the gap between your available credit and the amount you're using. If you can't pay off your cards immediately, consider moving the balances to a three-year personal loan. However, make sure to carefully review the loan's interest rate and fees to ensure it's a financially wise decision. Balances on instalment loans like this don't affect your scores as strongly as credit card balances.

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