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Boost Your Credit Score By 100 Points Without Breaking A Sweat

In today’s economy, practically everybody is dependent on credit. Credit is just as much one of life’s essentials as food, shelter, and clothing.

Well, perhaps that’s a slight exaggeration. But the point still stands. Credit is enormously important. And building a good credit score is essential for your future freedom. As a result, we all want to know how to boost our credit scores. On top of that, we want it to be easy. We don’t want to have to live in a caravan, eating super noodles all day, just to make ends meet.

The highest credit score you can get is 850. Anything above 750 is good and will give you access to the best rates and the biggest loans. If your credit score is below 750, that’s when you can start running into trouble. Credit scores between 700 and 750 and you are at risk of being declined. Credit scores around 650 or less and lenders will almost certainly turn you down. So what can you do?

Cultivate A Mixture Of Credit

Most people build their credit scores using credit cards. Credit cards, however, don’t enable users to build credit scores quickly. A better way to build your credit quickly is to use credit cards in conjunction with installment loans. Installment loans include things like auto loans and personal loans. Credit score companies are more impressed by people who can handle multiple forms of debt.

Keep Using Your Old Credit Cards

Your credit score is partially dependent on the length of time you’ve been using credit. The longer, the better. But sometimes you can inadvertently delete your credit history by binning your older credit cards. It’s a good idea, therefore, when building your credit score to keep older cards open. This allows creditors to check back over a longer credit history when calculating your credit score.

Get A No Credit Loan

A no credit loan is a loan that allows people to build their credit scores through their savings. Essentially, you pay your savings to a lender and then that lender lends out your savings. After a given period of time making repayments, your savings unlock. Thus, you end up with a significant sum of cash and a better credit score to boot.

Up Your Credit Card Limits

Debt utilization is the term used to refer to the percentage of your balance that is over your total limit. Typically this should be no more than 40 percent, although ideally, it will be below 20 percent. The best way to deal with debt utilization is to pay down as much of your balance as you can. But if you’re struggling, you can ask for a higher limit. This will reduce the debt utilization and improve your credit score. Just remember that this is a short-term solution. You still need to figure out a way to pay down the debt. It’s not an excuse to just go out and spend more money.

Finally, it’s worth noting that it’s essential you always pay your bills on time. Being late is the single biggest factor that will get you red flagged by the industry.