As we mentioned previously, there are really two ways to go about repairing your credit, paying for a credit repair service or doing it yourself.
In this article we focus on the do it yourselfers and highlight 5 simple credit score hacks you need to know for 2017.
Credit Score Hacks #1 – Leverage Someone Else’s Good Credit
If you have a close relationship with someone who already has good credit, say a spouse or a parent, consider asking them to add you as an authorized user for one of their credit cards. As an authorized user, you get credit for the “good credit history” of the person you are now sharing the credit card with. As long as the primary credit card holder continues to make payments on time and keeps credit card balances at a reasonably low level, your score would benefit, even if you never actually use the card.
Credit Score Hacks #2 – Increase Your Credit Card Limits
Now you may be asking yourself why would I want to increase my credit card limit. Well the answer lies in a key metric the credit agencies use to determine your score, and that would be the credit utilization ratio. The credit utilization ratio is the amount of debt you have vs. your total credit limit. The higher the credit utilization ratio, the lower your credit score and vice versa.
Credit Score Hacks #3 – Make Micro-Payments
Most people make one credit card payment each month when their bill is due and while this is fine in theory, the better way to approach making credit card payments is to make weekly or bi-weekly payments and here’s why:
Say you have a $10,000 credit line with $7,500 of total credit card debt yielding a credit utilization ratio of 75%. Instead of paying $500 once a month, consider making weekly payments of $125. The more you pay before the next billing statement the more you shrink that credit utilization ratio, which as we stated before will effectively increase your credit score.
Credit Score Hacks #4 – The Rent Hack
This is a fairly new one. Under new rules, renters can ask their landlords to report timely payments of rent. It’s really up to the landlord or property management company if they want to do it, but if they agree to (and you make timely payments), you could see a nice bump in your credit score over time.
Credit Score Hacks #5 – Stay Up On Your Credit Score
Credit reports are often rife with errors which could damage your credit score unnecessarily. This is why it is important to stay up to date with your credit score and report any inconsistencies that you may find. Do yourself a favor and check out your credit report here now, you may be surprised as to what is included on it.
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