As a college student, I think it surprises people that I have good credit. I’m going to give you some excellent tips today on raising your credit score.
If you are not good at managing your finances, you should be afraid of the phrase “credit.” However, I can help you with a few easy fixes.
Open an unsecured account after you feel comfortable using your bank’s secure credit card, which is what you should do when you first start. Secure and unsecured vary in that the former has more flexibility and doesn’t have exorbitant interest costs. Those who advise against getting a credit card have a history of credit abuse. I am here to help you overcome the negative stigma about credit cards.
The word “credit” may scare you; honestly, you should be worried if you are bad at managing money. But, I have some simple fixes for you.
I believe the best way to increase your score is to use a secured credit card first, then move on to cards like Discover.
- ALWAYS aim to pay your credit bill on time. When you pay on time, you will see an increase. (Basically, use your credit that you can afford to pay back within one month.)
- Use the 30 percent rule. So, let’s act like your total balance is 500 then you should use less than $150 or $150 to stay underutilized.
- Try not to apply for so many credit cards at once because applying for many at once. (Hard Inquiry)
- When just starting, try a low credit card balance and if you see you are doing fine, then increase it after a few months. You could then change that secured to unsecured.
- Another great idea to build your credit is being an authorizer on a credit card for example like your mother’s.
- When using your credit card try only using it for important things like groceries or gas because these things are really easy to pay back and you could pay it back in two days after the purchase if you have the money in your checking account.
I hope these tips help you increase your credit.