Pay Bills On Time
Paying your bills on time is one of the most important ways to improve your credit score. Companies such as FICO and VantageScore base a large part of your credit score on how consistently you pay your bills. This helps them determine whether you can repay loans and credit cards. Regardless of whether you are applying for a new credit card or not, paying bills on time will boost your score.
Using Credit Cards Judiciously
Credit cards can be a great asset to build your credit score, but it’s important to use them wisely. Keep track of your spending, and only make purchases you can pay for in full on the next bill. This will keep your balances in check and avoid a high interest rate.
Avoiding Back-To-Back Credit Inquiries
Avoiding back-to-back credit inquiries is an important part of a sound credit-building strategy. Inquiries, which are also known as “hard pulls,” are requests from businesses that want to know about your credit history. Hard inquiries are not always negative, but multiple ones can hurt your score. Fortunately, there are several ways to avoid them.
Paying Off Charge-Offs Or Collection Accounts
If you have one or more charged-offs or collection accounts on your credit report, there are a few ways to quickly raise your score. Initially, you should focus on preventing your current loans from facing the same fate as charge-offs. You can do this by making timely payments on these accounts. Similarly, you should avoid opening new credit accounts until you have paid off all your existing balances on time.