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How to improve your credit score fast

How to improve your credit score fast

You have probably reached this site as you want to know how to improve your credit score fast.  Maybe you want to make a large purchase at a lower interest rate, or you’re planning for the future – you have a car in mind, getting married, home improvements or planning a holiday.  Having a great credit score will help support your needs if you plan on taking out credit.

How to improve your credit score fast

How to improve your credit score fast

With a great credit score, interest rates will be much lower than if you had a poor credit score. I look at this as an incentive.  Who wants to take out a loan at a 3% interest rate when they can get the same loan for 2%?.   Not me and I don’t think you would either.

Remember credit score is really your friend. Depending on how well you treat it depends on how it’s going to deal with you.  Many people don’t agree they need credit and that “cash” is good to buy anything.   I used to think like that.  No, in fact, my parents taught us that having credit was bad.

However, unless you are financially stable, there can be things that you need that you will not be able to afford at once. You must have credit to build credit, and many banks and financial institutions will not even consider you for loans and/or credit until you have good credit score.

So, what are some of the ways and methods you can use to improve your credit score? How to improve your credit score fast

1. Save each month


Set aside some money each month and let it grow in a savings account. This money is to be used in an emergency such as an illness, a divorce, death of a family member or an accident.  Unfortunately, it is these untimely events that can rack up huge sums of money.  You don’t want to be taking out credit for occurrences like this if you can afford it.  It’s all about planning your finances to secure your credit score for the future.

2. Increase your income


Your day job does not need to be your sole source of income. If you can do other work on the side to supplement your income, this will act as a buffer to help pay back credit and improve your credit score whilst doing so.  You can supplement your income by doing something you are passionate about. Having a secondary source of income can also protect you in case you lose your job.

3. Don’t fall for credit scams


Millions of people are so anxious to reduce their existing debt that they begin to search for solutions.  Under such desperate conditions,  they tend to fall into scams from credit repair services, payday loan sharks etc which only give the money in one hand but grab it from the other.  Only take credit from well-established financial institutions and companies that are backed by regulators.

4. Pay your bills on time


One of the causes for having a low credit score, is not paying bills on time.  A missed or late payment affects your credit score drastically.

When I say bills, I’m not just talking your credit card bills.  Your Smartphone bill, your TV licence, your gas bill etc. Unpaid or late payment of bills has a negative effect on your credit score.  What I do, is set up a direct debit to pay my bills so I don’t have to worry about missed payments.  Some companies also give you a discount off your bill for setting up a direct debit payment as it means less paperwork for them.  Less paperwork, means a saving which they pass onto their customers.

 5. Buy on credit


This may sound silly.  But to improve your credit fast, you need to be using credit.  The more credit you use, the higher your credit score will be ONLY if you pay back on time.  Pay for your monthly shopping on credit, pay for the petrol on credit, make small purchases on credit.  As a rule of thumb, I would say have a maximum of between $50 – $150 on credit at any one time.

Take out a loan for larger purchases – you will have a longer period to spread the repayment back.  If your credit score is good, you may even get a favourable rate on the loan.

6. Check for special offers and capitalise on them

0% interest rates on purchases are great especially if you want to make a larger purchase but don’t want to take out a loan.  Always check with your credit company if they have any special deals on.  If you have been with them for a long time and have a good credit record, they may be able to offer you other deals like low-interest rates on cash advances.

7. Apply for a special rate credit card


Many financial institutions want to help people improve their credit score.  They do so by offering credit cards specifically for those customers who have a low credit score and who may get rejected for one of the more lucrative cards.

By applying for one of these special cards, you can use it to build improve your credit score fast.  These cards may not offer a long-term 0% interest-free period but what they do offer is the chance for you to make purchases on credit to improve your credit score.

As you can see, there are many ways to improve your credit score fast.   If you have any comments on this post or would like to know more about improving your credit score, please feel free to leave a comment below and I’ll get back to you.

Jacqueline

8 Comments

  1. Thanks for dropping by Arta.

    Yes. When you make a sacrifice by putting a little aside each month, it becomes easier with time. Not only that, you will find that the little you set aside each month soon amounts to a huge sum as you’re not constantly withdrawing from it.

    Wishing you continued success with improving your credit and your saving plans.

  2. I personally like point number one – about saving. If few years ago somebody told me I am going to start saving, I wouldn’t believe. But here I am saving certain sum of money each month. I must admit that it was quite hard in the beginning but once you start doing it gets rolling. Now I can’t wait for the next coming month to put aside another sum of money 🙂

  3. Hi there, thank you for these tips. Without doubt it is important to keep our credit score healthy.

    When I made my research about this topic, I stumbled upon the technique known as Award Stacking; in which we can use our credit card to collect airlines miles to travel for free at the same time improve our credit rating.

    Have you heard about award stacking before?

    Thanks

    • Hi A Habil,

      Thanks for your comment.

      Yes. I have heard about Award stacking. I know that Virgin has this scheme with their credit cards. It’s a great way to build air miles whilst building your credit report. However, most of these cards are geared towards those who already have a great credit score. .

      There are alternatives for those with a low credit for example store credit cards which offer incentives such as discounted vouchers based or a tiered point system depending on the amount spent on credit.

      Thanks for dropping by.

      Best wishes.

  4. Thanks for putting up this helpful post. I’m sure many people could benefit from this.

    I would like to add on to the second point of increasing income. As an online marketer, I would highly recommend people who want to increase their income to look for opportunities online. There are lots of ways where you can make some extra cash or even a full time income online by doing something of your passion or interest.

    What are the alternatives online do you suggest? I would like to hear your opinion.

    • Hi Jerry,
      Thanks for your comment.
      There are many opportunities online. For someone that has a passion or interest in a subject matter, I would suggest Affiliate Marketing. Signing up to do surveys is also another way of earning income online.
      Personally, I like Affiliate Marketing as this opens up doors of opportunity with little investment and the returns can be great if you put in the effort and hard work which is required to make it profitable.

  5. Jacqueline, I particularly like #6. We are always taking advantage of “same as cash” offers, which is just a layman’s way of saying 0% interest rate. We recently bought a mattress that allowed us to put it on the store’s credit card at 0% interest for 8 years! I’ve never heard of anything like that. Who wouldn’t love the chance to build their credit at absolutely no cost?

    • Hi Andy,
      Thanks for your comment.
      Haha… that’s funny. How much did the mattress cost!?!
      Yes. I’m always looking out for 0% interest purchase offers. In fact, sometimes I give my credit card company a quick call to ask if they have any promotions going on. A great way indeed to build your credit at no cost!!

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