5 Tips to Increase Your Credit Score

When getting pre-qualified for a loan, one of the main things your lender will look at is your credit score and history. Having a good credit score can better your chances at qualifying for a loan. Here are 5 tips that can help increase your credit score!

1.      Make frequent payments on your credit cards. Instead of the traditional monthly payment, paying a smaller amount each week can help keep your balance down and help increase your credit score.

2.      Do not cancel your credit cards! If there is a credit card you don’t use anymore, pay off the balance and leave it open. This can help you by having a longer credit history with available credit and little to no balance.

3.      Make your payments on time! Having late payments can stay on your credit report for 7 years. A good way to make sure you don’t forget to make any payments is to set up auto-pay.

4.      Become an authorized user on someones account who has a long record of strong credit. If you are just starting to build credit or looking to boost your score, you can ask a relative or friend who has a good credit history and a high credit limit to add you to their account.

5.      Higher credit limit. If your income has gone up recently or you’ve had a credit card for a few years, you pay on time and kept the balance low, you can contact the card issuer to ask for a higher credit limit. With a higher limit and balance remains low or the same, it can boost your credit score.