Ask America’s Ultimate Experts
Whether you’re on the job hunt (almost half of employers look at credit scores when hiring new employees), or trying to secure a loan (most lenders look for a score of 620), having a good credit score can help. Our experts share the quick ways to boost yo
Up your credit quickly!
Clear away errors! Approximately 40 million credit reports contain errors, according to a study commissioned by the U. S. Senate, reveals credit expert Brian Diez. “That means there’s a one in five chance you have an error on your report that could ding your credit!” What to do? “Get in the habit of checking your once-ayear free credit report at Annual Creditreport. com,” advises credit expert Bruce Mcclary. “Look for mistakes, such as an open account showing as closed or erroneous late payments.” If you spot an error, dispute your report easily online at Annual Creditreport. com. Most disputes are resolved within 30 days, meaning you could see a bump in your credit in just a few weeks! Tip! Read the personal information on your credit report closely to be sure everything from your birth date to your current address is accurate. “While mistakes on this section may not affect your credit score, they could help you catch something else, like attempted identity fraud,” reveals Mcclary.
Become an authorized user!
“An easy way to boost your credit is by becoming an authorized user on a spouse’s or family member’s account, ideally one with a high limit, low balance and great payment history,” says Diez. “This way, you get to take advantage of his or her good credit, boosting your score about 10 to 15 points!”
Divide your monthly payments!
Instead of making one big credit card payment per month, “make one payment before the statement closing date and another before the billing due date,” suggests credit expert Liz Weston. “This strategy reduces the balance that’s reported to the credit bureaus, which can help move up a mediocre score in no time.” Consider adding rental history! “I love the strategy of adding rental payment history to a credit report,” says personal finance expert Lynette KhalfaniCox. “If you have a mortgage, your payment is reported to the credit bureaus [Equifax, TransUnion and Experian] every month, rewarding you for responsibly paying on time. Now, in the last two years or so, renters can also take advantage of a long payment history, getting credit where credit is due. I’ve had so many clients tell me this has really worked for them. Within about two weeks of reporting rental history, they typically see a double-digit boost to their score. Your landlord has to agree, and you have to get a third party to send your rental history to the bureaus for a small fee.” Learn more at Rentreporters.com or Renttrack.com.