Good credit, bad credit, no credit? We’re gonna start this article off just like a lousy local car dealership commercial. I’m here to tell you that you can put 0 down on a brand new, 2018 plan to boost your credit score! What a deal.
On a serious note, credit scores are so important that one small mistake when you’re a young adult can screw over your chances of leasing a car ten years down the line. Everyone is always boasting about how high their score is, or shying away from the fact they don’t have the best, or any, credit. So here are the top tips on how to freely boost that credit score and get back to living financially stable.
The first common misconception is that you can have good credit by having few to no accounts open. This is completely false. If you avoid credit institutions, there’s not enough evidence of credit for you to have a good score. Instead, keep multiple accounts or cards open, and use them WISELY. Especially when it comes to old cards, keep those accounts open. Even if you aren’t using the associated card, the length the account is open helps boost your score a lot!
On the topic of credit cards, make sure to pay off credit cards first, before any student loans or mortgage payments. Cards have a higher impact on your score, so set them at your top priority. Additionally, you can add your rent payment to your credit factors, allowing for more aspects to contribute to a higher score.
One of the biggest things you can do is to report any credit errors to the credit bureau. They are required to investigate any claims as soon as possible, and finding errors can lead to an instant boost. And lastly, budget well! Don’t pull out the credit card you’re working to pay off to make another purchase. Otherwise, you’ll never make any progress.