The average credit score in America is 695. A score of 300 is the lowest and most at risk. A score of 850 is the best and creditors are counting on you to pay them back.
If your credit score is less than stellar, it could be affecting your life negatively in many ways. One of the big things you might experience is high interest rates whenever you go to apply for a personal loan. In a worst case scenario, you may need to resort to a payday loan online if your credit score is too low to qualify for a lower interest rate loan from the bank.
Instead of hoping for the best, continue reading this article and learn eight powerful credit hacks for boosting your FICO score.
Top Credit Hacks That Really Work
If you don’t understand how the credit bureaus and lender look at your credit, it can be confusing. You might not know some things you can do right away to increase your FICO credit score without a lot of work. Use these following hacks to get real results.
1. Set Up Automatic Payments
One of the things that affect your credit negatively is having late payments. Even if you put payments on the calendar, it is easy to get sidetracked and forget to make a payment.
Set up automatic payments so you never miss a payment. When you have automatic payments set up, you’re never late. Make sure you always keep money in your bank account so you don’t have overdraft problems.
2. Dispute Late Payments, Collections, etc
Even if the late payments and collections are valid, you can still dispute them. If the creditor can’t prove you owe them, even valid charges can get taken off of the credit reports.
Some people don’t like doing this, but you’ll have to decide whether you think this is moral or not.
3. Ask for Goodwill Removal
If you have a good relationship with a creditor, you can ask them to remove late payment notes from your credit report. As long as you’re on track and your bank feels good about you, they are often happy to help you out.
4. Negotiate the Removal
If you don’t have a good relationship with a creditor, you can negotiate to remove negative remarks from your credit report. You will probably have to agree to pay in full, set up an automatic draft or some other carrot technique to get them to approve the removal.
5. Check for Omissions
Humans aren’t perfect, and that means that credit bureaus aren’t perfect either. Make sure to check and see that all accounts you are responsible for are listed on your credit report.
If accounts you have that are in good standing aren’t on your credit report, this keeps you from getting credit for the good things you’re doing. You need to have a mix of installment loans as well as credit card loans so it is important that you get credit for all types of accounts you have.
Yes – one account can make a major difference.
6. Dispute Errors
Do you see errors on your credit reports such as a wrong name, wrong address or wrong employer? If any of these things are improper, they can make you look flaky to your employer.
No matter how small of an error you see on your credit report, make sure to dispute it so everything is accurate. Sometimes a company will forget to send a report in when you pay your bill which could cause big problems for you.
Disputing errors is a great way to get results fast. If a creditor isn’t responsive when the bureau reaches out, they will take it off your credit report.
7. Increase Credit Limits
Increasing your credit limits allows you to have a lower utilization rate on your credit cards. If you’ve paid your cards on time and are in good standing, many cards will offer a credit increase even before you ask for one.
If your credit card company hasn’t offered an increase on your credit line, you can usually use their automated system to apply. If you don’t get approved for the credit line, it doesn’t affect your credit score when companies do a soft pull.
Even a small increase in your credit line can make a big difference. If you aren’t approved for credit line increases right away, wait until your credit history builds and you can try again to see if they will reconsider giving you the credit limit increase.
8. Lower Your Debt
Your debt to income ratio has a lot to do with how stable companies think you are. If you have high debt, but you don’t have a lot of income, creditors know there could be trouble if anything happens with your income.
The more you lower your debt, the better it looks in the eyes of your creditors. You’re more likely to get a loan if you keep your debt to income ratio below 30%.
Even if you just put an extra hundred dollars toward a loan that you owe on, you’ll be able to pay it down quicker. Make sure that you ask to put the payment toward the principle and not toward the next month’s payment.
Taking Charge of Your Finances
If you’re in need of a new car, money to pay for dental work and other things, it can be hard to save up money. Getting a personal loan no credit check might be your best option so you can get what you need when you need it.
Making sure to keep up with your payments is important, but what do you do when you need help? Online loans can help you consolidate your loans so that you can keep everything up to date and have one payment. Remembering to pay one payment is a lot easier than remember to pay a lot of different payments.
Get the Money You Need Now
Now that you’ve learned these helpful credit hacks, you can implement them to get the best rates. We love helping people just like you get the loan that they need. Quickly and easily submit your request for a loan today. Here are some other articles you might find helpful:
Your guide to bad credit personal loans no credit check guaranteed approval
How do personal loans affect your credit score?
How to get payday loans online no credit check
Rebuild your credit score with these credit cards for poor credit