6 Manageable Ways You Can Easily Improve Your Credit Score

When it comes to improving your credit score, there are strategies you can put into place to get your number up higher and higher. The task does not have to be daunting or time-consuming either. Here are six manageable methods that can improve your credit score.

1. Pay Everything On Time

Paying all of your bills on time will go a long way to shoring up your credit history. To make it simple, set up automatic payments through your bank whenever possible. If you find a bulk of your bills land on the same week or paycheck, see if you can move some of the due dates. Most credit card companies will allow you to move the due date yourself through their secure websites.

2. Dispute Reporting Errors

Each of the three US credit bureaus, TransUnion, Equifax, and Experian, must give you one free report each year. The simplest way to get one is through a federally recognized reporting company. This operation recommends that you just request one report at a time and comb through it for discrepancies. If you spot a mistake, follow each bureau’s guidelines on disputing errors. The process is free through their online portals, and the bureaus must respond to your request in 30 days. If you need help crafting an explanation, refer to some samples offered by the Federal Trade Commission.

3. Collections

Collection companies can leave a stain on your score. Look at your report and figure out how old the debt is. This unpaid debt can remain a part of your history for up to seven years, but if you work with the collection agent, the agency may change the status to paid-off.

4. Rebuild

Build or rebuild your credit with a secured credit card. You put money into these accounts and then use the card to pay for everyday items. This technique stops you from overspending while showing you can use credit responsibly. Before signing up for one of these, make sure they report to the three bureaus.

5. Increase Your Card’s Limit

At first, this may seem counterintuitive, but the closer you are to maxing out your account, the worse it is on your score. Because of the higher limit, it will not appear like you are about to max out the card. The trick to making this work is to be sure that you do not tap into that extra credit. Another alternative that will achieve the same effect is paying down as much of the balance as possible.

6. Utilize Balance Transfers

Credit experts often recommend that a person not use more than 30% of their available credit. If you have one credit card over this threshold and another one under, consider using a balance transfer. Contact the card company with the lower balance, and ask them how you can set up a transfer. Most operations let you do it online or over the phone.

Most of these techniques can be accomplished online or over the phone. Many of them do not require any extra money, and your efforts may add enough points to your number to give you a healthy score.

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