A low credit score can be one of the vital things that every credit card user has to deal with. A low credit score can be a big problem for a user as it leads to situations where his creditworthiness is questioned. Having a low credit score, a person is denied access to loans and credit cards in the first approach. So, it becomes essential to adopt unique strategies to elevate the credit score. However, the new or reluctant credit card users have a little idea about how to boost up the rating if it experiences a sharp downfall.
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Tips for building credit score in no time
Here are seven leading ways of how one can build a good credit score and maintain it for a long time. If you are currently facing a problem due to low credit score and indulging in thoughts like ‘how to improve my credit score, the following tips are for you:
Try getting the credit limit elevated
You can directly call your credit card issuer and ask if your credit limit can be elevated or not. On having a specific credit balance, the elevation of the credit limit can instantly improve your credit score. However, there is a rare chance that your credit card issuer will elevate your credit limit.
Pay all outstanding balance.
Outstanding credit debts can be the main reason why the credit score falls for a credit card user. Continuously missing the payments of a credit card must be avoided by the credit card user. If possible, you can make multiple payments to the issuer. This brings down the chances of credit score depreciation and helps to build it. If you give various payments, your credit utilization will prominently develop. It ensures creditworthiness.
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Correct the errors of the credit card
There are instances when you can find errors in your credit report. Although it happens rarely, it can decrease your credit score drastically. In case you find any such errors in your credit score, immediately contact your issuer. Your issuer will first negotiate if the error is present in your report. They will take the necessary steps to dispute it instantly. Once the error gets removed from the credit report, you can see your credit score improving readily.
Pay within deadline
For all the credit purchases you make in a month, you should make repayments accordingly when the report arrives. Quick and exact repayments can boost up the credit score to a decent level. Moreover, you can avoid paying interest if you provide the debt early.
Make sure all credit cards are open
Even if you decide not to use a specific credit card, avoid approaching the issuer to close the credit card account.
Discontinuing a credit card officially can lead to depreciation of the credit score. This happens as you lose the records of credit utility and the limit provided to you by the issuer. The best thing you can do is to decrease the usage of a credit card.
Approach someone for being an authorized user
If you are a new credit card user, you might face a lot of problems to build a good credit score. Find a reliable person under whom you can become an authorized user. Make sure the person you choose has a long and excellent credit history. The benefit of being an authorized user is that you get good exposure to increase your credit card usage and learn the tactics of money management.
Mixing credit cards
Mixing the credit cards can result in an instant boost in your credit score. You can try to approach a low-interest credit card apart from the one already present. This eases the management process for a credit card and revolving credit results in proper improvement of the score.
Building up a good credit score can be a time-taking process that depends entirely on the pattern of your expenditure. This is the reason why you must choose a credit card correctly. A detailed talk with the issuer can help him to understand the style of your expenses. If the features of the credit card match mostly with your money management pattern, it will be easier for you to build up a good credit score in a few months.