Wondering how to raise your credit score?
Figuring out how to raise your credit score can seem overwhelming.
But if you follow a few simple strategies, youll soon realize its quite doable.
Need Some Extra Money, Like, Now?
Check out some of our favorite ways to earn quick cash to cover the cost.
Whats a Good Credit Score?
Whats a Bad One?
Credit scores range from 300 to 850.
Heres how they break down:
Regardless of your credit score, theres always room for improvement.
(Well, unless youre one of the rare folks with a perfect 850 score.)
How Is Your Credit Score Determined?
Your credit score is made up offive basic components.
The credit utilization ratio represents how much of your available credit you actually use.
For example, suppose you have two credit cards.
Both ratios affect your score.
Many experts suggest keeping your ratio no higher than 30% or so.
(Youve heard of maxing out your credit cards.
That would put your ratio at 100%.
Thats very, very bad for your credit score.
Dont do it!)
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
Increase your available credit.
Youll want to do both to get the best score.
Here are some things to try:
1.
Call to see when that is, and adjust your payments accordingly.
Paying shortly before the information is reported is the best strategy.
Doing this might involve timing payments differently for different cards.
However, if figuring that out sounds like too much trouble, try the next suggestion.
Set Up Alerts
Many credit card issuers let you set up email alerts related to your spending.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
Spend Less on Your Cards
This is perhaps the most obvious way to lower your credit card balances.
Theyre all about increasing your available credit.
Get More Credit Cards
Suppose your credit card limits total $10,000 and you owe $4,000.
You have a credit utilization ratio of 40% which is not good.
Your credit score will reflect that.
Will having too many credit cards count against you?
Not unless you get them all in a short period of time.
(Some credit score compilers see that as an indicator of financial problems).
Also, its a good idea to verify any new cards you open dont become inactive.
After a year or so of inactivity, the card issuer may close your account.
Closing them reduces your available credit, automatically increasing your credit utilization ratio.
Keep Your Cards Active
I once had a card canceled because I hadnt used it in two years.
It was a card with a $10,000 limitandit was my oldest card.
I havent had another card accidentally canceled since I started using this system.
Steve Gillman is a contributor to The Penny Hoarder.
Caitlin Constantine contributed to this report.
