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Credit Hacks: How to Improve Your Score

bad credit hacks

No matter how well you plan your finances, sooner or later, there comes a time when you fall back on credit. In order to get a loan approved, it’s imperative that you keep your credit score high. Obtaining a high credit score comes with discipline and patience. If you consistently maintain a good track record, you can easily raise your credit score. However, there are also some quick hacks that can help you with increasing your credit score.

In order to that that, first you must understand all the factors that contribute to your credit score.

– While credit score is an important indicator of one’s financial management, one shouldn’t waste too much time worrying about it.

– Credit scores keep fluctuating. While you shouldn’t obsess over it, keeping an eye out will help you make better financial decisions.

– Keeping a tab can also help you identify theft in case you notice an abnormal drop.

– Sources like Credit.com offer some great tools to access your score on a monthly basis.

Once you know your score, you can take measures to improve the same.

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HERE ARE THE HACKS:

1. Find a Friend

If your chances of getting a loan or getting a credit card are low, you can always get some help from friends and family. Get someone you trust to add you as an authorized user to their credit card. Though one is not really sure how exactly this method helps, some agencies are known to take secondary card holders into consideration.

This technique involves a certain amount of risk, and you should take it forward only if you completely trust the primary cardholder. Also, the primary cardholder must trust you equally in order to add you as a secondary cardholder.

2. Make Frequent Payments

Although, the first step to increase your credit score is to use your available credit limit to the bare minimal, you can make up for your expenses by making frequent payments. One never really knows when the credit card company sends out the reports about your expenses and payments. It helps to make multiple payments in each payment cycle. However, you need to plan this properly to ensure you don’t miss the actual payment date.

3. Multiple Accounts May Help

This method is slightly on the trickier side, but if done strategically it just might work in your favor. If your credit card limit is low and you don’t necessarily have to cut down your spending, you can open one or two new credit card accounts to increase your available credit limit.

However, if you’re planning to make big purchases like a car or a house in the near future, this method can do more harm than good. It’s best to avoid those extra inquiries.

4. Reporting loss of your card

Although this might not be the most ethical measures to take, reporting the loss of your card gives you an edge. The company closes your existing account, opens a new one and moves all your history, including your original start date to the new account, thereby increasing the average age of your credit. This helps increase your credit score.

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