One of the most important things to remember about credit repair is that, no matter how difficult it might seem, it is entirely possible and much easier than you may imagine. In reality, there are five credit hacks you should be aware of that will not only improve your credit scores but will also help you save money………….they will change your life in the process.
Keep at Least Three Major Credit Cards
Holding at least three major credit cards open at all times is by far one of the easiest ways to fix your credit (and increase your credit score in the process).
Now, this isn’t going to be possible for everybody, and that’s perfectly fine. However, if at all possible, keep them open and use each one sparingly. Paying three on-time payments per month will still increase your credit faster than making a single payment to a single card.
Credit Utilization
Similarly, you should keep an eye on your credit utilization, which is the amount of your overall credit that you are actually using on a daily basis.
For the best effect on your credit score, try to keep the sum of all of your balances between 25% and 30% for as long as possible.
Increase Your Credit Limits
This one may seem strange at first, but it ties in well with the previous piece of advice.
The lower your credit utilization is, the higher your credit limits are. You’re using 50% of the available credit if you have a card with $1,000 in available credit and a $500 balance. However, if the same card’s total credit limit is increased to $1,500, the $500 balance reflects just 33% of what you might be spending.
It’s a perfect way to get some credit repair practice without really doing something.
Defend Yourself Against Those Hard Inquiries
As you begin your credit repair process, you might feel compelled to apply for a new credit card with a lower interest rate to help alleviate some of your financial burdens. If at all possible, stop applying for a new credit card, since this will often result in a “hard pull” on your credit, which will lower your score in the short term.
If you can repair your credit in other ways for a year and don’t have any “hard pulls” during that period, you’ll see an almost immediate boost after the year is up.
Concentrate on the Installment Loans
Finally, paying down installment loans as soon as possible is one of the easiest ways to rebuild your reputation. Car loans, student loans, and other types of installment loans are considered a different “class” of credit than conventional credit cards.
Please don’t hesitate to contact us if you’d like more information about the five credit hacks that will change your life, or if you simply have additional questions that you’d like to discuss with someone in greater depth.