You are using an unsupported browser Please switch to a supported browser so you can get the best experience on this site
Need Help? Contact Us or Live Chat
Post it note saying boost credit score

The Top Ten Ways to Boost Your Credit Score

A good credit score gives you more loan options, lower interest rates, and even rewards and special offers. Eventually, it can even help you save thousands of dollars and get peace of mind from knowing you can take out a loan any time you need financing.

However, many Americans don’t have good credit. Surveys show that 30% fell into debt because of the double whammy of income loss during the pandemic and inflation. If you’re one of them, here’s some good news: you can rebuild your credit score. You don’t need a higher income—just careful, consistent financial decisions.

Get a copy of your credit report

Just like a doctor needs a physical exam or lab test to diagnose a disease accurately, you need to get your credit report to find out what’s pulling down your score.

  • What you need: Your credit report from Equifax, TransUnion, and Experian (the three major credit bureaus)
  • How to get it: You can get a copy of all three reports from AnnualCreditReport.com. You can send an online request or call their hotline at 1-877-322-8228. You’re entitled to one free report a year. There are also free websites you can retrieve your credit scores.
  • What to do next: Check why your score is low. Factors include payment history, credit card balances, your credit mix (or the different kinds of loans or credit cards you have), and the age or length of your credit accounts.

Now that you’ve diagnosed the problem, you can make a plan. But first, follow the next steps to increase your score for each factor.

Avoid late payments

Payment history makes up 35% of your credit score, so you must prioritize paying bills on time to improve your rating.

  • Keep track of due dates. You can use a money management app, your phone, or Google calendar. Set up notifications so you never accidentally overlook a bill.
  • Fix your budget. If you consistently miss payments because you ran out of cash, it’s time to revisit your budget and make hard decisions. Where can you cut down or eliminate expenses? Usually, the spending categories that have more flexibility are food, groceries, and entertainment. For example, you can save a lot simply by cooking instead of ordering takeout.
  • Automate payments from your bank account. This is fast, convenient, and forces you to stick to your budget because the amount has already been deducted from your living expenses.

What if money’s tight this month, and you need a couple of days to raise the cash? You have up to 30 days after the due date to settle the bill before it’s reported to the credit bureaus.

If you foresee needing more than a month, call the creditor to ask if you can adjust the due date—if you pay bills regularly and are a long-time customer, they may agree.

Check for errors

Your credit score may have been pulled down because a creditor did not report a payment, incorrect accounts because of someone with a similar name or identity theft, duplicate accounts, outdated credit limit information, or closed accounts that remain open in the report.

Report errors to the credit bureau to improve your credit score.

Reduce your credit utilization to 30%

Credit utilization is how much of your credit limit you are using. There are two possible ways to fix this:

  • Pay off remaining balances. Call the lender to discuss payment plans if most of your debt comes from one credit card or loan. If you have several outstanding debts (like balances on multiple cards), start by paying off the card with the highest balance.
  • Ask for an increase in your credit limit. Credit card providers may be willing to increase your limit if you have been a long-time customer or if you can show additional income. If that is not an option, consider taking out a line-of-credit loan, where you are given a credit limit and are only charged when you borrow money.

Improve your credit file

Another common problem is when you don’t have any credit history because you’ve never taken out a loan or gotten a credit card. So, lenders don’t have any basis for your score. As a result, you may be approved for smaller personal loans but not for a car loan or a mortgage.

That’s why you need to establish your creditworthiness by taking out personal loans and then paying them off on time for your overall financial health. You can also sign up for programs like UltraFICO and RentTrack or apps like Altro that will report other financial factors—like banking history or rental payments—to bureaus.

Don’t close old accounts

Á lot of financial advisers will tell you to cancel credit cards you don’t use. While that is true, since you save on fees and prevent overcharging, don’t cancel your oldest cards. The length or age of credit affects your score. If you don’t want to use it, just cut up the card but keep the account open.

Plus, canceling a card that you’ve already paid off while keeping cards where you have a balance will affect your credit utilization ratio.

Diversify your credit mix

A credit mix is how many different credit or loan accounts you have. The types of credit are:

  • Installment loans. With this loan, you borrow a specific amount of money and then pay it off through regular payments over a set period. Examples: personal loans, student loans, and credit cards.
  • Revolving debt. You have a credit limit and can borrow any amount anytime as long as you stay within it. Examples: credit cards, home equity loans, and lines of credit.
  • Mortgage accounts. While mortgages are paid off in installments, they differ because the interest rate can be fixed or variable.
  • Open accounts. These are loans or accounts where you must pay the balance at the end of each month. Example: collection accounts.

Credit mix accounts for 10% of your credit score. A good credit mix shows that you can handle different loan responsibilities. For example, revolving credit shows that you always pay on time, while installment credit shows that you can pay off bigger amounts. 

Don’t apply for several new accounts at the same time

While taking out a credit card or loan can improve your credit score, you mustn’t apply for several simultaneously. Credit bureaus may think that a lot of borrowing is a sign that you need money quickly. 

Consider consolidating your debt

Debt consolidation can help lower your credit utilization and allow you to pay off one lender. Just check to see if there are any fees for transferring the loan or if the lender has any penalties for ending a loan early. 

Ask to be an authorized user of a card

If you know a friend or family member with a high credit score, ask if they can add you as an authorized user of a credit card they’ve used for a long time.

They don’t even have to give you the card (and you definitely shouldn’t take advantage of them). It helps pull up your score by improving your credit utilization ratio, payment history, etc.

Rebuild your credit with Simple Fast Loans

A loan can help you start a credit history, improve your mix of credit, or raise the percentage of your credit that you are using. 

But loan applications can be tedious and time-consuming. Simple Fast Loans can make it easier for you. Instead of lining up at different banks or calling to find out their requirements, you must fill out one online application.

Simple Fast Loans will then look for a lender in your state and facilitate the process.

How do I get a loan?

Just fill up the inquiry form and submit a few documents online. The process takes just a few minutes!

Don’t worry: the form is concise, the site is secure, and all information will be kept confidential and only used to help you find a loan. And if you have any questions, a loan representative will always help you through the process.

What kind of loans can I get?

Simple Fast Loans offers personal loans, installment loans, and lines of credit.

How much can I borrow?

You can borrow from $200 to $3,000 depending on the loan you are applying for, your income, credit history, and the regulations in your state.

Do I need a high credit score to apply for a loan?

While some loans require a credit check, you do not need a perfect score. Instead, send an inquiry to a representative to discuss your loan options.

What are the benefits of working with Simple Fast Loans?

  • Fast, convenient online application
  • Trustworthy lenders
  • Clear process
  • Transparent communication – no undisclosed fees or terms and conditions
  • Fast response time (you get a decision immediately!)
  • Security and confidentiality of information

Don’t be discouraged by a bad credit score or lack of credit history. You can rebuild your credit and find a lender to help with emergency expenses. You can take that first step towards taking charge of your finances through Simple Fast Loans.  

About this blog

Browse through the Blog to read articles and tips on managing debt, improving your credit and saving more money!