Poor credit can negatively impact your financial well-being in a number of ways. It can prevent you from saving money on monthly loan payments because of the high interest rates, and it can also prevent you from taking out a line of credit for loans such as a mortgage, car loan, personal loan, credit card, or student loan.
However, credit experts can help you on your way to improving your bad credit or even achieving the coveted excellent credit score. In addition to paying bills on time, establishing a good payment history, or keeping credit utilization low, Experian Senior Director of Consumer Education and Advocacy Rod Griffin offers the following five tips to boost your credit score quickly:
- Use Experian boost to add points instantly
- Open a secured credit account
- Become an authorized user
- Get a co-signer for a small personal loan
- Have your rent indicated
To check your rates and see what rates you can get for a personal loan, visit Credible to get prequalified in minutes.
Use Experian Boost to add points instantly
Experian boost allows Americans to share their bank accounts with the credit bureau in exchange for an increase in their score when Experian reports their positive payment history. The credit bureau will add that payment history to your report, which will then increase your FICO score, VantageScore, and other credit scores.
This can help you improve your credit score and move you closer to achieving excellent credit. It can also establish a credit history for the invisible credit, those who have never used credit and therefore have no score.
For those with thin credit records — five items or less on their credit report — or those with credit scores below 680, Experian Boost increased scores by an average of 19 points, Griffin said. Those with higher credit scores and longer stocks saw an average increase of 12 points from Experian Boost.
Open a secured credit account
A secured credit card can help you build your credit by backing up your credit card with something, rather than taking out an insecure line of credit. You can usually pay it back with a savings or checking account, or set aside a small amount to borrow against. This will allow you to start building or rebuilding your credit score. To see secured credit card options, visit Credible to compare terms and cards.
Become an authorized user
One of the easiest ways to boost your credit score is to become an authorized credit card user. If you have a trusted friend, family member or partner, they can easily add you to their card as an authorized user and immediately add them and its history to your credit profile.
Many credit cards do not allow a joint application, but you can add authorized users.
Get a co-signer for a small personal loan
Lenders will be more willing to borrow money if you have a co-signer with a positive credit history. By co-signing the loan, they agree to pay the loan should you be unable to. Adding a personal loan can also improve your credit mix, which is also good for your score.
However, it is important to keep in mind that if the lead applicant misses a payment or defaults on the loan, it will also negatively impact the co-signer’s credit. View Credible to compare rates for multiple personal loans and see if you qualify.
Have your rent indicated
Whether you’re renting from a single-family home or a large apartment complex, you can talk to your landlord about: have your rent declared. This can help you build a positive credit history.
“We’ve seen that in almost 100% of cases when someone tries to get a credit history, [reporting rent] will help them do that,” Griffin said. “And it helps, in the vast majority of cases, a person improve their credit score.”
The tips above are just a few ways to increase credit scores quickly. Consumers can also pay off debts to keep credit usage low, or sign up for a credit monitoring service to monitor their credit report and guard against identity theft.
“Raising your credit score is all about taking care of your credit report,” Griffin said.
Contact Credible today to check your credit score, and, view options such as personal loans that can help you pay off debt or build a credit history to improve your credit score quickly. Credible can also help with credit monitoring so you can debug your credit report and protect against identity theft by sending fraud alerts for unusual credit applications or other suspicious activity.
Do you have a financial question, but don’t know who to ask it? Email The Credible Money Expert at: email@example.com and your question can be answered by Credible in our Money Expert column.
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