A better credit score means a lower interest rate on loans, and it also increases the chances that you will be able to finance your next large purchase without a co-signer. There are many things that you can do to quickly raise your credit score, and some of them can have an impact within the first 30 days that you execute them.
Make Sure Your Limits are Properly Recorded
You may notice that your credit card companies seem to raise your limits every three months or so, but you avoid spending up to those new limits to make sure you are not maxing out your cards. Allow the credit card companies to increase your limits because the more available credit you have, the lower your percentage of used credit is. If you had $500 spent on a card with a $1,000 limit then you had a usage percentage on that card of 50%. If the credit card company raises your limit to $2,000 then your usage percentage suddenly drops to 25%. The lower your usage percentage on your credit cards, the more your credit score rises. But if the credit card company is not reporting your new limits to the credit reporting agencies, then you are not benefiting from your limit increase. When you make a regular check of your credit report, always make sure the proper limits are listed for each account. If the limits are not correct, then notify your credit card company and have them make the correction immediately.
Pay a Little Extra to Your Cards
As was outlined previously, the lower your usage percentage is on your credit cards, the better your credit score becomes. Use your extra money each month to pay down your credit cards and decrease your usage percentage. You can focus on one card and pay it down, or you can spread the money around each month and lower the amount you owe on each card a little at a time. Do not ask the credit card companies to lower your limits as you pay your balance down because you want as much available credit as possible. Continue to pay your cards down, without using them each month, and you will see your credit score increase.
Pay Your Bills On Time
It seems simplistic to say this, but paying your credit bills on time will cause your credit score to rise. Credit card companies not only report late payments as marks against your credit score, but they sometimes use late payments as a reason to raise your interest rate, which raises your monthly minimum payment. Pay your credit card bills on time and before other bills each month. If you can also pay your other bills on time then do so. However, if other bills have to wait, then make your utility payments later in the month as they usually carry the lowest late fees. Also, the utility companies are less likely to report late payments to the credit reporting agencies.
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