Your credit score isn't set in stone; it's a dynamic number that can change over time. If you find yourself with a less-than-desirable credit score, don't worry - with dedication and strategic planning, you can repair your credit!
In this post, I will share tips that helped me to improve my credit score - but please remember that you need to be patient - following the steps will bring the results, you just have to give it time!
1. Review your credit report regularly
Obtain a free copy of your credit report from TransUnion and review it for accuracy. Look for any discrepancies, inaccuracies, or fraudulent activities. Disputing and correcting these errors can have a positive impact on your score.
In the United States, TransUnion holds a significant position as one of the three major credit bureaus,
alongside Experian and Equifax. This reputable entity is responsible for tracking the credit histories of American consumers, using this information to generate detailed credit reports and scores. TransUnion’s credit monitoring service comes with more features than just credit monitoring. The subscription comes with the recommendations on how to improve your credit score - including resources to guide you through the credit repair process, a protection and insurance against the identity theft and a credit score simulator, which can help you to find out how certain decisions and actions could possibly influence your credit score in the future.
2. Pay your bills on time and reduce credit card balances
Payment history is a significant factor in your credit score calculation. Consistently paying your bills on time demonstrates your commitment to responsible credit management and can boost your score over time!
High credit card balances relative to your credit limits can negatively affect your score. Aim to keep your credit card utilization below 30%. Paying down existing balances can significantly improve your score.
3. Establish a mix of credit types (but avoid opening multiple new accounts)
Having a diverse mix of credit accounts, such as credit cards, installment loans, and a mortgage, can positively impact your score. It demonstrates your ability to manage different types of credit responsibly. But be careful! Each time you apply for new credit, a hard inquiry is added to your report, which can temporarily lower your score. Be cautious about opening multiple new accounts within a short period.
Important! Be cautious with closing accounts: Closing old accounts can potentially harm your credit utilization ratio and overall credit history length. Keep older accounts open, even if they're not in active use.
4. Use a credit rebuilder card service
One of the things that can help you to improve your credit score is applying for a "starter" credit card at Grow Credit. Even though banks and credit bureaus view Grow Credit as a typical credit card, the company isn’t a traditional credit lender. The users are only allowed to pay for monthly subscriptions (such as Netflix, Hulu, Peacock, Mint Mobile, etc.) with the card, and the card is automatically paid off each month. This allows users to show a low credit utilization and demonstrate a history of strong credit payments to the credit bureaus.
If you struggle with a poor or limited credit history, you should consider using Grow Credit to increase your credit score.
Grow Credit offers a 0% interest and no-fee Mastercard to all US Residents age 18 and older who have at least one qualifying subscription.
Stay committed to making positive changes in your financial behavior, and over time, you'll witness the fruits of your labor as your credit score begins to rise!
Ava
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