How to raise your credit without credit repair

We all wish if our credit score could be like a race car, where one could put the engine in overhaul and instantly see the results but unfortunately it’s not.

Whether you’re trying to raise your score or maintain your top-notch report, here are some of the ways to see an immediate change in that magic number.

Your credit score is usually based 

on the answers to these questions:

  • Do you pay your bills on time?  
    The answer to this question is very important.
    If you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will show up in your credit report.
  • What is your outstanding debt?
    Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
  • How long is your credit history?
    A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
  • Have you applied for new credit recently?
    If you have applied for too many new accounts recently, that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
  • How many and what types of credit accounts do you have?
    Many credit-scoring models consider the number and type of credit accounts you have.
    A mix of installment loans and credit cards may improve your score.
    However, too many finance company accounts or credit cards might hurt your score.

How You can Improve Your Score:

  • By Raising Your Credit Limit:
    You can ask your creditors to increase your limit e.g. making your master card good for up to $3,000.
    But one needs to be more careful, this will only work if you actually trust yourself not to increase your spending limits.
  • Becoming An Authorized User:
    This is going to be very simple; you just need to convince your friend or relative to be added to his/her existing credit card account.
    Offer to put an agreement in writing stating how much you can spend and how you will get your share of the bill to the cardholder. Then simply do your part and use the card responsibly.
  • Stop Applying for Credit Cards:
    Well until you have sorted out any problem on your credit file and improved your credit score.
  • Pay twice a month
    If you’re someone who charges close to your credit limit each month — even if you pay it off in full, it could damage your score.
    Your Credit Score is incredibly sensitive to how much you’re charging compared to what your credit limits are.
  • Diversify
    If you’re someone who’s only had revolving credit, your score may get a boost simply from getting another type of loan — a personal loan or a car loan, for example.

While you shouldn’t rush out to get a loan simply to bring up your score, it’s not always a bad thing to have a loan on your record.

-Jay Abbas