We all know the saying, “money makes the world go ‘round”. Having a credit score, and a good one at that, is very important in this day and age. Whether you are just getting started and trying to establish a credit score, already have a good score you are trying to maintain, or if you have made some mistakes in the past and are trying to rebuild, it’s always great to know the ins and outs of boosting your score. Here are some ways to do just that as soon as possible.
Check your score
Knowing what factors are effecting your credit score is crucial when looking for ways to increase it. We have all been told at one point or another that checking your score can lower it; which can be true. But now we have amazingly helpful apps, like Credit Karma, that let us know where our score is at without adding an inquiry to your credit report. You can check Credit Karma as often as you would like and your credit score will not be effected whatsoever. Credit Karma updates your score every 7 days so you can ensure that you have the most accurate, up to date score available. Credit Karma can also give us information on the factors that are effecting your score, good and bad. Knowing the risk factors allow you to make better changes to improve; and knowing your good marks help you to continue with those good habits. Certain risk factors require time, and a little patience, to improve. For example one thing that could be hurting your score is a hard inquiry on your credit report. Those normally take 2 years to fall off. You can increase your score by having positive marks on your report as well. Some of these can include making on time payments and not overusing credit cards.
Experian Boost
Experian Boost is a fairly new program (launched in early 2019) that has already helped millions of people increase their FICO credit score almost instantly. It is great for those trying to build up their credit for the first time and also those that want to rebuild their scores fast. Experian Boost works by using your bank records to find qualifying on time payments that wouldn’t otherwise be used for calculating your score. These payments include phone payments, utility bills, even your Netflix account. These types of payments are normally not factored into your credit file so by using Experian Boost you are able to quickly establish the positive payment history into your credit score quicker than normal. The best part about it is that only positive payments are added to the history on these accounts so that means that if you have any late payments it will not affect your score negatively. Another amazing benefit to this credit aid is that it is completely free to use. All you have to do is connect your bank accounts and it takes all the information it needs. If you ever want to opt out, it’s worth mentioning that it is also free to disconnect your accounts and you will not be penalized.
Get rid of your debt
Getting rid of debt is easier said than done. There are a few places to start depending on where you are at in your journey to becoming financially free and boosting your score. A more simple solution to start with is to cancel all the monthly subscriptions you no longer use or forgot you signed up for. We are all guilty of starting up an account to get the huge first order discount or snagging the free two week trial. Most of the time they have the monthly fee in tiny print we never pay attention to and before you know it, they are sucking $50 a month straight out of your account. There are a ton of helpful apps now to help keep things like this in check like Truebill. This app connects to your bank account and finds all of the reoccurring subscriptions and cancels the ones you no longer need or want. Another great app that helps with budgeting and making sure your money doesn’t go to waste is Digit. This app analyzes your spending habits then allocates the money to help with whatever goals you set it up to help you achieve. It can help you do anything from paying off a credit card or making sure your bills are paid on time.
Consolidating your debt is always an option too if you have a large number of debt or multiple accounts open. Debt consolidation can help you to relieve a lot of the stress of trying to remember what accounts you have and haven’t paid and also reduces the interest substantially. A huge benefit is that you can get your debt paid off in as little as 24-48 months.
Beefing up your credit score is not something that’s going to happen overnight. It takes hard work and discipline to stay on track. There are a lot of different methods to help which makes it easier to find the one that fits your situation best. It is never too late to improve your score, no matter where it’s at.