According to one study, 16% of Americans have bad credit. If you fall in that percentage, you might be wondering what you can do to improve your credit score. Thankfully, we know how to get you to the credit score range that you want to be in, so keep reading to figure out how you can reach the highest credit score and improve your credit score!
1. Make Each Payment
One of the first things you need to do is make sure that you make each payment on time. While paying off your credit cards and loans are important, you should also focus on making other payments on time as well.
You might not think that your gym membership, rent, or any other subscription services will count towards your credit. However, if you don’t pay them, and they send it to collections, this will cause your score to fall.
2. Check Credit Reports
While Pinnacle Credit Management can help you, checking your credit reports can help make sure everything is going according to your plan.
If you want to figure out what is hurting your credit score, you should check these reports. You can request them from three main places: Equifax, Experian, and TransUnion. However, you can only do it once per year for free for each of them.
You can review this report and make sure that all of your bills are being paid on time as well as make sure that no one else has opened a line of credit under your name.
3. Ask For a Higher Limit
You can also ask for an increase in the limit of your credit for each card. If you ask for that and keep your balance the same, then the percentage of your credit that you’re using will go down.
Doing this makes your credit score go up. However, you shouldn’t do this too often because it could drop you down a few points if you ask too much. However, if you’ve had an increase in income or have years of good credit, you can always ask!
4. Limit the Number of Accounts You Have
You will need open credit card accounts or loans to build credit, but you shouldn’t apply to every card that is out there. Make sure that you do your research to open a card that you will actually use and qualify for.
Even inquiries into different accounts could hurt your credit score, so definitely be sure you want that card before you send an application in. However, if you’re applying for different loans, this rule doesn’t apply.
Discover More Tips to Help You Build Your Credit Score
These are only a few tips to help you build your credit score, but there are many more out there.
We know that building a credit score can be difficult, but we’re here to help you out!
If you enjoyed this article, make sure that you explore our website to find more articles just like this one.