Having a positive credit score is vital for your credit and making future purchases; you’d have better luck figuring out how to treat a bunion without surgery than you would getting a loan with a poor credit score. If you want to buy a house, a car, or any other major purchase, you’re going to need to up your credit score, but not to worry, as there are a few simple ways you can go about it.
Use a Credit Card
Some people may be weary of using credit cards after hearing horror stories about how others misused their cards and wound up with a mountain of dept. However, using a credit card is actually quite beneficial for increasing your credit score when used responsibly.
Each time you use your credit card it will have a positive impact on your credit score—assuming you pay them on time. If you have the funds, this is a simple and effective way to build credit. By simply using it on items you would typically pay for in cash anyway, like groceries and gas, you’ll be spending the same amount and being rewarded for it—you may even get some money back on your purchases.
Pay Bills on Time
While using a credit card can benefit your credit score, this is only true if you actually pay your monthly bills off on time. Failing to pay your bills on time can actually have the opposite effect, in that it will hurt your credit, along with building up a decent chunk of interest to pay off.
That being said, as long as you pay your bills on time, it will only add to your ever-increasing credit. It’s crucial that you don’t make purchases on your credit card that you won’t be able to pay off at the end of the month, and if you have trouble remembering when you need to pay it off, mark it on your calendar so that you don’t miss it.
Increase Credit Limit
If you truly want to increase your credit score, you might want to consider increasing your credit limit. This can be done by either opening a new credit card or simply requesting that your spending limit be increased. The higher your credit limit is, the lower your credit utilization will be.
This, in turn, will effectively help your credit score in the long run. Just be sure that you aren’t stretching yourself too thin across multiple cards and that you aren’t purchasing more things on your higher credit limit than you can afford.
Better Credit, Better Living
The better your credit score, the better off you’ll be going forward, regardless of if you need to buy a house or just hike it out of the red zone.