Looking for more ways to boost your credit score? We have five more ways to raise your credit score.
Dispute errors
The Federal Trade Commission acknowledges that a significant number of credit reports have mistakes. Some mistakes can be damaging enough to hurt your credit score.
Look over your credit report closely.
- Make sure all the accounts belong to you.
- Verify that your credit limits are accurate.
- Account status should be correct.
- Payment history should be accurately reported.
- No negative items should be older than seven years (except lawsuit judgments).
If you spot an error, you can write to the credit bureau to have it removed. Include a copy (not the original) of any proof that will help get the item corrected.
Get different kinds of credit.
Credit cards are one of the easiest types of credit accounts you can have and they have a big impact on your credit score. But, the credit score likes it when you have experience with other kinds of credit, too.
In addition to credit cards, you should also have installment loans. These have a set payment amount and a set repayment timeframe.
Since you should only take on new credit as you need it, you don’t have to be in a rush to open a new loan. The next time you’re looking for financing, consider taking out a loan instead of using a credit card.
Put your payments on autopay.
Payment history is the biggest factor influencing your credit score—it’s 35% of your score—so paying on time is critical to raising your credit score The more on-time payments you have, the better it is for your credit score.
Put your monthly credit card and loan payments on autopay to increase your on-time payments with less effort.
If you miss a payment, make it up right away instead of doubling up on the next due date. As long as you’re under 30 days late, your lender won’t report you to the credit bureaus.
Request verification of collections.
If you spot collections you don’t recognize, make sure they’re yours before sending payment.
Write to the collection agency listed on the account letting them know you don’t believe the debt is yours. Once you send this debt validation request, they’re required to provide proof of the debt or remove it from your credit report.
Leave your old accounts open.
The more experience you have with credit, the better—credit age is 15% of your credit score. Old accounts help boost your credit score because they show that you’ve been using credit for a long time. Having older accounts on your credit report also helps you maintain a good average credit age, which goes down a little each time you open a new account.
Conclusion
Stay focused on your credit score goal, but don’t overdo it. Some actions—like disputing too many accounts—can cause more harm than good. Continue building good credit habits and in time, your credit score will reflect your efforts.