In this article, we have explained the most effective methods to help you increase your credit score. Your credit score might be the most critical number in your financial life.

The higher your score is, the more you qualify for loans and credit cards with the best terms—meaning that you will probably be able to save money.

If your credit score is not where you want it to be, know you are in the same boat as countless others. For reference, here is the scale used by FICO:

• 300 – 579: Poor
• 580 – 669: Fair
• 670 – 739: Good
• 740 – 799: Very Good
• 800 – 850: Exceptional

A common misconception is that there is no going back once your credit becomes poor or even fair. You are stuck with a bad history for life. It is just not true!

Your credit score is constantly changing based on your actions now. If you start making the right moves, you can increase your credit score from poor to excellent! All it takes is a little bit of hard work and focus.

Before you can begin taking steps to increase your credit score, you need to determine your score and obtain your report. We have outlined numerous accessible routes to get that information here, so check it out!

How can I fix my credit score?

Once you have checked your score and obtained your report, there are several ways you can work to increase your credit score:

Check for errors:

Unfortunately, there are sometimes cases in which your credit score is wrongly damaged because of inaccurate information. Comb through your report to ensure everything is correct before proceeding with any other steps. This blog tells you what to look for and how to fix credit report errors.

Pay bills on time:

Paying bills on time is one of the most critical rules for building our credit. No matter what else you do, your credit will not improve if you keep garnering more and more past-due payments. On that note, you also need to pay off past-due bills; they are dragging you down!

Maintain low balances:

Credit bureaus pay attention to which accounts you open and how much you are using on those accounts. A good rule of thumb is to keep your credit utilization ratio below fifty percent—for example, if you have a credit line of $1,000, do not use more than $500 of it during that period.

Be wary of closing credit cards:

Unless you have to (such as when paying an annual fee for a credit card you no longer use); you should avoid closing credit cards. It lowers your overall average credit history and can hold your score back. If you must complete an account, try to close the newest one if that is an option.

Don’t take on too much:

Conversely, do not apply for too much credit. Not only do you not want to find yourself drowning in a sea of debt from too many crisscrossed accounts, but any hard inquiries completed during the application negatively impact your score and stay on your history for two years.

Increase credit limits:

Many times, if you call and ask politely, the bank will be more than happy to do this for you (granted that you have a decent payment history). The lower your credit utilization ratio as long as you do not increase your spending in proportion to the increase in your credit line.

Pay off high-interest accounts:

These are the accounts that weigh you down the most. Focus on paying off high-interest accounts in order of oldest to newest. Not only do you decrease your debt as much as possible, but you also increase your credit score with your new accounts.

What if I don’t feel confident enough to do it myself?

If you are worried that you will somehow mess up or have tried all of the above methods to no avail, consider paying for a credit repair service. After some intense web surfing, we gathered some of the most recommended credit repair services out there:

• AMB Credit Consultants
• Breitman Capital
• Credit Saint
• King Financial Repair
• Lemay’s Income Tax Service (LITS)
• Lexington Law
• Optimum Credit Solutions
• Sky Blue
• Venture Credit

Disclaimer: 

We are not affiliated with any of the companies listed above and are not recommending them based on our experience. Everybody’s experience with these services may vary by situation, so we recommend doing your research.

Each of these companies varies in price, how long they have been in business, and every other aspect of a company. However, they are all highly recommended and have stellar reviews. Do your research, reach out for consultations if they are free, and determine which service would be best for you.

If you decide on a service not on this list, check to see if they have good reviews and are reputable—you don’t want to give your information away to somebody you can’t trust.

Are there any other options to increase your credit score?

If you do not want to pay the price for a credit repair service but still need to feel comfortable embarking on your credit repair journey, then there are a few other things you can do to prepare yourself.

• Take a deep dive into forums. Forums like CreditBoards are free, and real people speak about their experiences and how to increase your credit scores. One of the best ways to learn how to do something is from someone who has already done it.
• Turning to YouTube might sound odd, but YouTube is a goldmine of tutorials. There are so many videos out there that can teach you the ins and outs of increase your credit score, and again, many of these explanations come from people who did it themselves.
• Research, research, research. What it boils down to is doing your research. It will be tough to fix your credit if you don’t know how and why, so utilize the resources at your fingertips and learn all you can about credit repair.

The most important thing you can do is be patient. No matter what service you employ or which method you decide to use, it takes time to increase your credit score. We recommend using one of the free credit score applications (which you can find here) to track changes in your score.

If you have any questions or recommendations for additions to this post, contact us and let us know!