1. Understand Your Credit Report
Before you can boost your credit, you need to know where you stand. Obtain a copy of your credit report from each of the three major credit bureaus: Experian, Equifax, and TransUnion. Review each report carefully for errors or discrepancies.
2. New Credit Applications
Each time you apply for new credit, a hard inquiry is made on your credit report, which can lower your score. Limit your applications for new credit and only apply when necessary.
3. Dispute Errors On Your Credit Report
Mistakes happen. You can dispute errors on your credit report with the credit bureau.
*Secret: When disputing, clearly identify each mistake, state the facts and explain why you dispute the information, and request deletion or correction.
4. Maintain a Low Credit Utilization Ratio
Your credit utilization ratio is the amount of credit you're using compared to the total amount available to you. Keeping this ratio low can positively impact your credit score.
5. Pay Your Bills on Time
Late payments can significantly harm your credit score. Make sure to pay all your bills on time to maintain a positive credit history.
6. Tradelines to Build Credit
Tradelines, or credit accounts, can be used to build credit. Consider becoming an authorized user on a credit card with a good payment history to boost your credit score.
7. Authorized User (AU) Techniques
Being added as an authorized user (AU) on someone else's credit card can help improve your credit score, especially if the primary account holder has a long and positive credit history.