Stuck in credit score purgatory? Here’s what you can do

Your credit score matters. If your credit score is below 700, you may find it difficult to secure a loan and be burdened by high-interest rates, making it difficult to make large purchases on credit. It’s important to monitor your credit score since it is a big measure of financial health.

If you feel like you’ve been trying your best to take care of your finances and still find yourself unable to increase your score, you’re not alone – over 40% of Americans are with you. It’s frustrating, but there are methods to raise credit scores and gain favor from credit bureaus. 

Here are four ways you can increase your score starting today, better late than never!

1. Use and Pay Credit Cards Strategically

While credit cards are useful, they can also lower your credit score if you accrue debt and max out your credit limit. We recommend never going over 30% of your credit limit per card. This is because when credit card companies report to the bureaus, a lower statement balance is better. 

Even if you are up to date on your payments, a mistake that a lot of people make is paying off the entire credit card balance instead of the statement balance. This can actually prevent a credit score increase as the bureaus want to see a low statement balance. You should always pay off your statement balance for the month on time to see maximum credit score increases. 

Credit cards are a great tool to increase your credit score if used correctly. Always make sure to stay around 30% or less of your credit limit on cards, and pay off your statement balance for the month on time. 

2. Use Credit Monitoring Tools

Many people opt to use credit monitoring tools to help them keep track of their score daily, get alerts, and simulations to maximize credit increases. These are especially helpful if you are trying to increase your score quickly, as you’ll be able to see where your credit score is decreasing and where it is increasing. 

We recommend using Rocket Credit Scores. They offer a tool to get insights into your credit score and people are increasing their scores at a faster rate than those who do not use it. They are currently offering a 7-day trial for just $1, and you are able to cancel at any time. 

Try Rocket Credit Scores here, and start raising your credit score today. 

3. Pay Your Bills on Time

It won’t matter what tools you are using to increase your score, paying bills late can stay on your credit report for up to seven years! Having good history on all of your bills is the best way to increase your credit score over time. 

Creditors take missed or late payments very seriously, and we recommend calling your creditors and getting current on payments if you are ever more than a couple of weeks late. This can prevent them from reporting to the bureaus and tanking your credit score. 

If you are having a hard time paying your bills on time, try stretching your other purchases with Klarna. Klarna covers your purchases and allows you to pay in smaller installments with no interest. But beware, getting behind or not paying Klarna payments can hurt your credit score as well. 

4. Get a Credit Building Card

Many banks and credit card companies will offer a credit building card. How it works is you pay a deposit to secure your credit line which will help build your credit as you will only spend what you can afford to.

Ask your bank if they are offering a credit-building credit card, this can be a quick and easy way to start building your credit and increasing your score quickly. Just be sure to make payments consistently and keep balances low on the card. 

Many options will not have rewards or cash-back, but this is a great way for you to build up your credit score. 

Bottom Line

Struggling and frustrated with increasing your credit score? Using these four methods can start you on your journey to increasing your score. Follow us for more content on how to build wealth and stay financially healthy.