Tips to Increase Your Credit Score

Open a Bank Account and Getting Your Own Credit Card

When seeking out a loan, giving lenders the availability to look into your financial history is a positive. This gives them the ability to review your account, see that you make regular deposits, and have a positive balance. If you’re just starting out banks may have their own credit cards that they will give you with a small credit line, if you have a minimum balance or savings account. There is also the option of retail stores or credit providers that offer cards to students or those with low initial credit lines.

Make Payments On Time

While having a credit card open can look good to potential lenders, it won’t make a difference if you don’t make your payments. Paying all bills on time is an obvious way to increase or maintain a good credit profile, but it’s something people easily forget. Keeping reminders or a schedule of when bills are due may be a helpful strategy to ensure you’re consistently meeting due dates.

Ask a Relative

Asking a relative with a solid credit history to cosign on a credit card can also be beneficial. If they already have a credit card, you could also ask to be added as a card member. If that card is always paid on time, you own credit history will be positively impacted.

Obtain a Secured Credit Card

This can be very helpful in repairing credit for those with a rough payment history. Secured cards require an initial deposit, allowing you to use the card anywhere that accepts Visa or Mastercard. Showing that you can use the card responsibly will incline credit bureaus to take note, and start improving your score.

Request a Credit Report

You should be able to request a credit report for free from one of the three main credit bureauses: TransUnion, Equifax, or Experian. You can also request to get a credit report annually. Having your FICO score you can make sure that your history on the Credit Bureau is accurate. If it’s showing up incorrect you should contact them immediately and let them know the error, so they can start the correction process.

The Importance of Building Your Credit

Having good credit gives you more financial freedom as well as the ability to borrow money when most needed. It may even help you get a job, as sometimes employers check credit history, to ensure they’re hiring a stable and responsible employee.

Apply for an installment loan today!