How to Increase My Credit Score

Updated: Feb 24



Are you looking to improve your credit score? Whether you're trying to get approved for a loan or just want to have a good credit rating, there are things you can do to boost your score. The credit score is one of the most important numbers in your life. It can dictate whether you can get a loan for a car or a mortgage, and it can also affect the interest rate that you pay on those loans.


If your credit score is low, it's time to start taking steps to fix it. This article will discuss how to increase your credit score and make it more appealing to potential lenders. Follow these tips, and you will be on your way to improving your financial future!


Steps to Fix and Increase Your Credit Score


1) Check Your Credit Score & Report

The first step is to check your credit score regularly. You can get a free copy of your credit report from AnnualCreditReport.com. This website allows you to view your credit report from the three major credit bureaus: Experian, Equifax, and TransUnion.


Once you have your credit report, take some time to review it. Make sure that all of the information is correct and up-to-date. If you see any errors, report them to the credit bureau immediately.


You should also look at the Experian credit report. This number will give you an idea of where your credit stands and what areas you need to work on. You can get your credit score for free here.


2) Fix or Dispute Any Errors

The next step is to fix any errors on your credit report. This can be done by either disputing the credit bureau's error or fixing it yourself.


If you dispute an error, the credit bureau will investigate it and determine if it is correct. If the bureau finds an error, they will update your credit report accordingly. If they do not find an error, then you may want to consider fixing it yourself.


If you fix an error yourself, make sure to document everything. This will help prove that the change was made correctly.


3) Always Pay Your Bills On Time

It is important always to pay your bills on time. If you do not, then it will negatively impact your credit score and make it harder to get approved for loans.


You should also check your credit reports at least once a year to ensure that all of the information is accurate and up-to-date. This will help you catch any errors and fix them before they hurt your credit score.


4) Keep Your Credit Utilization Ratio Below 30%

Your credit utilization ratio is the amount of credit you are using compared to the total amount of credit available. It is important to keep this ratio below 30%.


If you have too much debt, it will negatively impact your credit score and make it harder to get approved for loans. You should always try to pay off your debts to not impact your credit limits and score.


If you have too little debt, potential lenders will not look good. They may think that you are not using your credit wisely. Most credit card companies will be more than happy to increase your credit limit if you have a decent payment history. Try to keep your debt around 30% of your income so that you are not overspending and underutilizing credit.


5) Pay Down Other Debts

If you have other debts besides your mortgage or car loan, it is important to pay them off as soon as possible. You should consider snowball and avalanche methods when paying off credit card debt.


To do a snowball method, pay off the smallest debt first and the avalanche method, pay off the highest interest rate debt first. This will help you save money on interest and get out of debt faster. Determine which method works best for you and stick to it!


6) Keep Old Accounts Open

It is important to keep your old accounts open. This shows that you are a responsible credit user, and it can help improve your credit score. You should also keep all of your revolving credit accounts active by using them periodically.


If you do not use a credit card account, the lender may close it for inactivity. This will negatively impact your credit history and score, so always use at least one of your accounts each month to keep them active.


7) Don't Take Out Credit Unless You Need It.

It is important not to take out credit unless you really need it. You should always live within your means and pay cash whenever possible. This will help you stay out of debt and improve your credit score.


Credit cards can be a great way to build your credit score, but only if you use them responsibly. If you are not careful, you can easily get into debt and damage your credit score.


Bottom Line

If you follow these tips, you should be able to improve your credit score within a few months. It may take some time, but the results will be worth it in the end. There are also many credit repair companies that can help you if needed. Remember that you need to be patient and consistent when improving your credit scores.


If you have any questions or need help with your credit score, please feel free to contact us. We would be happy to help!


Foundation Credit Solutions is a fully operated credit repair business serving all of North Carolina. We do more than just fix your credit, we also help you take all of the necessary steps to get you pre-approved for a home loan. To find out more about how we can help you prepare to purchase your dream home book an appointment today.




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