Quick ways to increase your credit score

by Jason Klein

Trying to establish good credit can be a long process. However, there are ways to do this quickly, if you have the know-how. Doing it takes following directions; you must stay on top of your credit to ensure your score grows accordingly. Here I compile some information on how to do so.

The first rule of earning good credit is keeping credit applications to a minimum; the more you apply, the lower your score goes. If you do want to fill out several applications, without damaging your score, do so all in one week. This way, the applications are seen as a maneuver for getting the best rates. Otherwise it will appear you are going on a shopping spree!

Using a good cosigner can be an effective way to earn a better credit score. Choosing a cosigner with a long credit history is a plus too. Don’t use a cosigner’s information without permission. If the person who you choose as a cosigner has a good credit history, you will get a higher rating for just being associated with that history.

Older accounts can help boost credit your credit score, since long credit history is looked on well. If you plan on establishing credit, but not using it, you can benefit just from being on the account without making purchases. In some cases, you won’t even need a card to build the credit. In this way, your friend won’t have to worry since their billing statements will remain private, as they won’t be sent to you as well as them. Making bad decisions with your friend’s credit accounts can be detrimental to their credit as well as yours; remember that you can lose your friend too, if you mess up the credit.

Another suggestion for earning good credit quickly is to establish a secured credit card account. Open three such accounts, borrow money from each and place it in separate bank accounts. Using the borrowed money to pay the accounts off in installments will help to earn history with the company from which you got the cards.

This is a good way to go, but it isn’t free. You will have to put a cash deposit up to get the secured card; you will also incur interest and fees on the accounts. Be warned that at first, your credit score will lower for accessing your history. After only a few months, you will have established good credit by paying the cards “as agreed.”

A note about how you use any of your revolving (credit card) accounts – you may not realize it, but if you pay off your accounts each month, you actually don’t have as good a score as if you leave some debt in the revolving accounts. If you want to increase credit score, you will need to carry some debt, as this shows that you can manage your debts without getting into trouble. Just make sure that you don’t carry more than a quarter of your available credit on any one account.

Make your payments on time as late payments will hurt your credit score. As any delays in the mail will make a last minute payment late, you should make sure to send payments early. Following all these rules will help your credit score immensely and rapidly.

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