3 Tips to Improve Your Credit Score by 30 Points or More in 2017
If you attempt to apply for a loan at a low credit score, your loan application may get approved but it is likely that you will be charged with a high interest rate. The solution to this problem is to raise your credit score. Raising your credit score by 30 points can make a big difference in the interest rate that you are being assigned.
One way to raise your credit score is to get a secured credit card. It is easy to get approved for a secured credit card because it does not have a minimum credit score requirement. You must put a security deposit before they will approve the application.
The amount of security deposit you want to put is up to you but the minimum amount is usually $50. The secured credit card works just like the regular credit card and can be used to pay for your gas, groceries and other expenses. When looking for a secured credit card, make sure the credit card company will report the payment history to the credit bureau so that your credit score will keep on increasing as you continue to make the monthly repayment promptly. Paying your credit card bill on time can be a great help in raising your credit score. If you already have credit cards, you should start paying down all the existing debts. In the mean time, you should not submit new credit card applications.
You can look for someone that is willing to add you as an authorized user. You should try to get added as an authorized user on 2 – 3 credit cards as this can help to boost your credit score. It is important that the owner of the credit card does not have bad credit history or bad spending habit as the same can also be reflected on your credit report. For example, if the owner has late payment on his credit card, the late payment entry will also be recorded on your credit report. You don’t have to be using the credit card in order for this method to work.
You can request for a free report from one of the credit bureaus to review your credit report for mistake. The Federal Trade Commission conducted a survey where 5% of consumers will encounter some mistakes on their credit reports. If you notice a mistake, you should dispute them. If they discover that it is really a mistake, it will be corrected on the credit report which can help to increase your credit score by a little bit. For example, if you saw some collection accounts that has appeared on your credit report by mistake, you can get removed by filling a dispute.