Naturally improving your credit score might be complicated, depending on your situation. If you have bad debt on your record you will need an expert to help you out. All others, especially those who are still new in the U.S., may benefit from the strategies below.
Become an authorized user on someone else’s card
This is a lightning fast way to improve your credit score. Simply marry someone with excellent credit and ask to be on their account. Problem solved.
Open More Cards and Use Them
Open as many cards as you can handle, ideally without annual fees. You could also open store cards, which are easier to apply for. Or secured credit cards are also possible. Then use them a lot.
Pay the Entire Balance Off
Unlike some bad advice that circulates online, you should always pay off and never carry a balance. This should be done on all cards to keep them active; otherwise, they may be closed.
Do not Close Old Accounts
Do not close credit cards, especially if you had them for a very long time. A long positive history is of paramount importance to your credit score.
Pay the Credit Cards Multiple Times a Month
I bet you didn’t expect this one. Pay the credit card balance off several times in the month, long before the monthly bill comes. This easily adds up to 100 points to your score. Try paying the bill twice a month. If your credit card company prints the FICO score on the bill, you will see your progress.
Ask for Credit Limit Increases
Increase your credit limit every year or so. This improves the credit score in two ways, first of all it shows a bank trusts you now with more money and also if you keep using only a tiny fraction of the limit, you stay below the ‘penalty’ line.
Do not Use more than Half of Your Credit Limit
Try to stay way below half the limit; hence, the advice above makes even more sense when you consider that once you get into the upper third of your credit limit, the alarm bells go off and your score goes down. You are about to overspend, so they think.
Did You Know You Are a Thief?
You need to use credit cards to rent a car for example, if you ever get stranded. You should absolutely get a cash back credit card. Why? Because it’s a scheme to get the poor to pay you. Yes you read that right. The poor have no credit cards obviously, so they pay cash. The not-so-poor use credit cards, ideally with cash back. Now you get 2% cash back on everything, why should you pay cash? What really happens is the store increases prices because of the rather high payment processing transaction fees that the banks charge and because more and more people use credit cards. Then the cash payers, who end up being the stupid ones without knowing it, pay extra on top. The 2% cash back really comes from the poor people, who pay cash only.
There you have it, you pay cash and you are penalized for it. When you use credit cards, you end up stealing from the poor. But the 2% cash back is an illusion because the retailers already added that on top of the price. Hence, you need the 2% off to get the ‘real’ price. That’s modern life my friends, it’s a constant storm of [****] coming from all directions.
The reason why this scheme works is simple: despite saying otherwise, in Western societies most people only care about themselves and see only their own perspective, thereby failing to uncover what’s going on a the big picture. As contradictory as it sounds, when people are only exclusively interested in their own, personal gain, it’s easier to manipulate them.
Why Improve the Credit Score?
Remember, it’s a stupid artificial intelligence robot making decisions today, not a human being, but you end up paying for the machine’s stupidity. And you may end up paying in places you don’t expect it, where it has nothing to do with credit cards, such as phone service, life, car, and home insurance, car rental, electricity service, etc. All over they place they are looking for excuses to [****] you, so you better get that score high up and keep it there. Hope this helps!