Credit Tip Tuesday #95-How To Improve Credit Score Fast - 5 Expert Tips

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You know a good credit score is your best friend when you want to stabilize your financial life.

It can help you get an affordable mortgage, build a trust-worthy profile, and score flexible loan terms.

Therefore, improving a bad credit score is always a good idea instead of ignoring it in the longer run.

But does it take time to see the credit increase? Or how do you do it in the first place?

No need to worry; our expert ways have got everything sorted for you!

These tips cover points ranging from using a secured credit card to managing your credit report and so much more for a healthy credit score.

So, let’s go!

Credit Score - Basic Introduction

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To put it simply, a credit score is your key to living a financially stable life.

But first, let’s get your basic intro straight.

So, what exactly is a credit score?

Basically, it is a formula used by credit bureaus, like Equifax, etc., to determine your credit or financial health and how well you’re managing your expenses.

The score ranges from 300 to 900, deciding your financial standing (Excellent, Good, Fair, Poor, Bad) accordingly.

Now the question arises,

Why Is Improving Credit Score So Important?

As mentioned earlier, a credit score helps you live the best of your financial life.

Your good credit score allows lenders or other money-providing sources to know how you efficiently spend on your secured credit card.

In other words, it determines that,

• You are paying your bills and taxes on time,
• You are not always too reliant on your credit to fulfill your needs,
• You have little to zero debt to pay down,
• You are financially in good shape to manage mortgage loans and pay them back on time,

And so on…

Moreover, a good credit score has its perks too.

For example,

• Lenders are more likely to provide you with a much-needed loan easily.
• You are more likely to receive that money at a low-interest rate.
• With low-interest rates comes easily payable mortgage installments.
• You get to save a lot for your retirement.
• You get to enjoy other offers and discounts, being a “loyal payer” to them.

So, now that you have read about why having a good credit score is so important to thrive in your financial matters, it’s time to dive straight into steps on building your credit score fast.

Improve Your Credit Score Fast – 5 Steps:

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It is normal to hear, “oh, rebuilding a credit score takes too long.” However, we believe otherwise.

Yes, it might require patience and continuous effort, but it’s not that hard to raise your credit score by 100 or 150 points in 30 or 60 days.

Therefore, we have brought you actionable steps to fix your credit score and manage your credit card properly.

1.   Never Leave Your Bills Unpaid

You receive your paycheck, and the first thing that comes to your mind is, “how many bills do I have to pay?”

Right?

Paying bills on time will not only let you enjoy an uninterrupted energy supply, but it will also give a boost to your credit score.

However, the opposite can cause a drop in your credit, making it low or, even worse, putting it in the poor range.

Therefore, stop ignoring your pending bills anymore.

Payment dates and all the details directly go to your credit history, letting lenders and other companies know that you can pay your bills responsibly.

2.   Keep Credit Card Balance In Check

What is a credit card balance?

It is basically the amount issued by the credit issuer to you.

So, how does keeping it low through credit payoff strategies boost your credit score?

Well, a little to zero credit card balance means:

• Firstly, you are not always relying on the money provided by the lender.
• Secondly, You owe little to zero money to the issuer.
• Thirdly, you’ve made fewer transactions like ATM withdrawals, etc., to meet your ends.

So, a low credit card balance would mean you are financially fit and not always looking up to money issuers for your needs and everything in between.

Related Article: Is Negative Balance On Your Credit A Bad Thing?

3.   Track Your Credit Regularly

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Generally, there are two inquiries on your credit whenever you try to check or track your credit history:

1. Soft Inquiry
2. Hard Inquiry

The hard method, as the name suggests, is very much capable of denting your credit score and, ultimately, your years-long efforts.

However, you can’t be pressured by the credit report and avoid checking your credit report.

There could be endless errors that can smash your history!

So, despite the inquiries, keeping track of your credit report is important because:

• First, it immediately lets you know of any change in your score.
• You make sure that your report is free of errors.
• You are mindfully aware of your every spending.
• You are updated in real-time whether your score has turned against you or in favor of you.

And the list goes on.

Therefore, we recommend checking your Equifax credit score and working on boosting it without causing any damage.

4. Wave Goodbye to “Buy Now, Pay Later”

As much as “buy now pay later” is popular, using it can bring equal damage to your credit score when you have pending installments to deal with.

Of course, it’s understandable how a BNPL service can tempt you to spend more.

• You get to buy everything you want instantly,
• You don’t have to worry about paying right then and there,
• You can enjoy shopping without actually spending in real time.

We get it; it’s great to have a getaway from all your problems and just spend free money.

However, you have to repay what you borrowed. So it’s not like it’s free-free but only at the moment.

Yes, step back, have control over your spending, wave goodbye to the afterpay, and let your credit score breathe a sigh of relief.

5. Start Small For A Big Change

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Every other expert says, “start small to achieve something big!”

So, what does this really mean?

The answer is simple: Take baby steps instead of focusing entirely on your financial goal!

Didn’t get it? Here you go:

For instance, your goal is to achieve financial stability, but you can’t do it right away. Instead, you must work your way up to reach your desired security.

So, the key is to focus on your next step instead of the complete road you must cover. Here are some helpful tips:

• Use a secured credit card with a low-interest rate when you don’t want to pay a high-interest rate with your bad credit score.
• Practice good budgeting and think of savings and retirement.
• Use automated tools that can help you pay bills on time.

Using a secured card and good budgeting can boost your credit score to help you focus on other financial matters.

Final Thoughts

A good credit score is important for so many reasons (you can read the full guide to know them all :p).

However, anyone can fall into a bad credit score trap.

No need to fret about it!

Yes, there are practical ways to get your financial matters out of it by improving your credit score!

All you have to do is work strategically through your tricky financial ways, like managing high food prices, budgeting, controlled spending, etc., for a better money-management future.

Lastly, we hope that you found these steps useful and easy to implement for a quick boost to your credit score.