credit is the number one reason for not being able to get pre-approved for a loan.
Luckily, there are some things you can do to raise your credit score!
Pay all of your bills on time to improve your credit score
Missing payments is one of the most detrimental things you can do to your credit score.
Ask for higher credit limits (but don’t use them)
Credit utilization plays a big role in your credit score. Let's say you only owe $1,000 on your credit card, but your limit on the card is only $2000. That means you have utilized 50% of your credit limit.
If you were to raise the credit limit on that card to $10,000 you would drop the credit utilization to only 10% of your limit, and your credit will rise.
Just be careful not to spend more money after doing this! It’s a short-term and effective way to improve your credit limit but spending above your borrowing means is not advised.
Pay down debt strategically
Pay off the higher credit utilization rate first. For example, if you owe $2000 on two separate credit cards, pay off whichever card has the lower credit limit first, because that card is utilizing a higher percentage of the available credit.
Dispute credit report issues
Actually look at your credit report. If there are items on there that don’t pertain to you, or were already resolved, dispute them and get them pulled from your report.
Become an authorized user
If you have a family member with incredible credit, you could become an authorized user on one of their credit accounts to build out your history.
Remember you’ll then be equally responsible for their credit score, so be careful and astute with your management of their funds, if you do have access to them.
Use a secured credit card
If you have no credit history, a secured card might help. This is basically a prepaid card, that you can use as a credit card, and then pay back again, to build your credit. This doesn’t help much if you have a credit history already, but if you’re brand new to building a credit score this can help you get started.
Don’t close credit cards (even if you don’t use them anymore)
The length of your credit history is an important factor in your credit score. Don’t close out credit cards, even if you don’t use them anymore.
Want more professional help?
Marine Corps veteran, and member of the community, Joshua Rico is worth hitting up if you would like a more hands-off approach that is tailored to your specific situation for raising your credit score! Do me a favor and let him know you found him from this blog post too. I always like making connections.
Let’s get that credit score raised so you can buy that home you’ve always wanted!