Increasing your credit score requires discipline and consistency. According to the Harvard Business Review, they’re better at resisting the temptation of immediate reward and they’re more trustworthy. It’s important to pay attention to the small expenses like subscriptions and memberships along with the large purchase.
Top 10 Ways To Improve Your Credit Score Infographic
How A High Credit Score Will Help You Build Wealth
Real estate, investments and a successful business are three factors that play a major role in building wealth. Cash flow is vital. In order to buy real estate, invest and launch your own company, you have to earn enough money to handle your expenses. Establishing a good credit score will help you build wealth because you’ll be able to qualify for low interest rates and higher limits.
Actor, Hill Harper, recently partnered with Experian on the Boost of America challenge. The program allows people to load their positive payment history to help boost their scores.
10 Ways To Improve Your Credit Score
- Dispute every negative item on your report.
- Ask for a credit limit increase to reduct your credit utilization ratio.
- Send goodwill letters to creditors asking them to contact the credit bureaus to remove negative information from your credit reports.
- Send debt validation letters to creditors and collection agencies requesting proof that the debt is valid and not outside the statute of limitations for collecting the debt.
- Diversify your credit mix to show creditors you can handle multiple types of loans. Lenders like to see a mix of revolving credit accounts (i.e. credit cards and personal lines of credit) and installment credit (i.e. student loans and car loans).
- Make multiple credit card payments in the same billing cycle to lower your credit utilization and ensure the minimum amount you owe will almost certainly be paid each month.
- Become an authorized user on someone’s credit account that is in good standing.
- Do not close old unused accounts because doing so will shorten your active credit history and your credit score will decrease.
- If you have bad credit, improve your credit by taking out a small loan and repaying it quickly.
- If you pay your rent on time, ask your landlord to report your rent payments to the credit bureaus.
Do you have any additional suggestions for people who want to raise their credit scores? If so, please leave your thoughts in the comment section below.