A good credit score can open the door for many things and it is something the vast majority of people will want. Getting a bad credit score is much easier than you might think but if you are ever in the position of needing to improve your score what should you do?
Improving your credit score is something that can naturally happen over time but the challenge many people face is how they improve it quickly. Can you really even accomplish this? While you can improve your credit score quickly it isn’t a simple and easy process and many people simply don’t know how to really do it.
But that is where I can help! Below I’ve outlined some advice and tips for people looking to improve their credit score quickly for 2019. Depending on your circumstances you might not be able to take advantage of all these tips but there will be at least a few things you can do. So, without further ado let’s begin and look at how you can improve your credit score quickly.
Pay Off Your Debts
Let’s get the most effective way of improving your credit score out of the way first shall we? Paying off your debts is one of the best ways to improve your credit score quickly. But while it is undoubtedly very effective the issue is not many people will actually be able to do it.
Many people in need of a better credit score simply won’t have the means at their disposal to quickly pay off large debts. However, that doesn’t mean there aren’t some other ways to benefit because you don’t have to clear the whole debt to improve your credit score.
The majority of debts will have a minimum payment you must make each month, however, if you can go beyond this minimum payment then you will likely be able to not only repay your debts quicker but also improve your credit score at the same time. So, if you are ever able to make larger payments do it because it will improve your credit score quickly.
Don’t Make Late Payments
Sticking with debts for the moment another great tip to follow is to never risk a late payment. One or two late payments might not seem a like a big deal but it can massively impact your credit score so don’t risk them. Missed payments are even worse so don’t risk them either if you can only make minimum payments then it’s better than a late payment.
Don’t Make Too Many Applications
You might have heard different information about making credit card applications when it comes to how to affects your credit rating, so what is the truth of the matter? Well, the good news is credit reference agencies won’t be told about any rejected applications. So, don’t panic even if you have been rejected a lot it might not be a huge problem.
However, that is not to say it will help your case either. Every time a credit search is made by a lender it will be noted on your record so every potential lender will know how many times people have searched for your credit details.
Having a lot of credit checks in a short span of time is unlikely to impress any potential lenders so my advice is to only apply when you know you have a good chance of success. This means you should avoid trying for a “scattergun” effect and not send applications to multiple lenders to improve your chances. Space out any applications because this way it will better guarantee your chances of success and even if you do get rejected it won’t count as much.
Prepaid Credit Builder Cards
If you want to improve your credit score quickly then a prepaid credit builder card could be a great way to do it. Credit builder cards require you to pay a small fee back each month and then after a set amount of time you will have a successfully cleared debt. This will show up on your credit history and help improve your overall credit score.
Credit builder cards come in many forms so explore your options carefully if you are thinking of getting one. The addition of an extra charge for a prepaid credit builder card might make them undesirable to some people but you can find plenty with small easily manageable monthly fees.
And they have been proven to help boost people’s credit ratings. So, they are certainly worth considering if you are looking to improve your credit score quickly, just make sure you get a card you can manage.
Think Carefully About Existing Accounts
Advice about existing accounts is somewhat scattered, some professionals will advise you to close any pre-existing accounts that you aren’t currently using. After all, what is the point of having an account for an unused credit card?
This does make sense however it’s important to know that simply closing an account won’t actually make it disappear from your credit history. When credit checks are run they will still see closed accounts and it might not always be a huge improvement to your score.
Some professionals also advise you to keep unused accounts open so you don’t have to open a new account if you ever need credit again. After all, having a lot of different credit cards in your history is unlikely to improve your score is it?
So, what is the best thing to do if you’re looking to improve your credit score quickly? In my opinion, it is always best to play it safe and be more cautious which is why I would advise closing any accounts you aren’t currently using and are sure you won’t actually need in the future.
Closing accounts might not boost your score by much to some lenders but it won’t damage it either. So, if you aren’t using any pre-existing accounts my advice is to get them closed as it will often do more to help your score than hinder it.