4 Overlooked Ways to Raise Your Credit Score

Little Known Hacks to Achieve a Better Credit Score

If you’ve ever needed a loan of any significance, you know the importance of having a good credit score. Your credit score can affect your ability to get a loan, buy a house, rent an apartment, get a credit card, and even impact your ability to get a job. Plus, those with high scores will most likely get lower interest rates and fewer fees on new loans.

My son is in the process of trying to improve his credit score, so we have been doing a lot of research on the topic. We found the basics of keeping an eye on your credit reports, paying bills on time, and not missing payments, but we also found some lesser-known tips that I want to share with those who might also be trying to raise their credit score.

RAPID RESCORE PROGRAMS Rapid rescore programs are basically a way to speed up your credit success. Instead of having to wait a month or so for the traditional credit reporting agencies to update your credit report, a mortgage lender can pay a fee to have your credit information updated in just a few days. This is especially helpful if your credit score needs an instant boost to make a big purchase like a home.

AUTHORIZED USERS For this technique, you’ll need someone with a good credit score and solid credit history who is willing to add you as an authorized user on one of their credit cards. After that, any positive credit history for that card will show up on your credit report and could positively impact your own score. But, be sure that person is trustworthy and reliable because any negative actions from them will also show up on your credit.

PAY-FOR-DELETE AGREEMENTS If you have a lot of late payments or outstanding collections showing up on your credit report, it might be worth it to contact the creditors and ask for a pay-for-delete agreement. This means they will remove the negative entries once you pay off the debt. It’s not something most creditors are willing to do, but if you’re successful in making this kind of deal, it will have a substantial impact on your credit score.

DIFFERENT TYPES OF CREDIT — CREDIT MIX The different types of credit you carry can impact your credit score. Try to have a balance between different types of credit cards, student loans, auto loans, and mortgages. This shows lenders you can responsibly manage different types of credit. Having a credit card from a retailer and a gas company, a student loan, and an auto loan is a good strategy for those just starting out trying to build, or boost, a credit score.

Building a good credit score will require hard work and dedication on your part, but it’s well worth it. Having good credit will open the doors to your future financial success. You will be able to leverage that high credit score to get better deals on loans and save money by getting lower interest rates.

For more excellent information about building your credit score check out my friend Josh Hinton’s story!

NOTE: I am not a financial planner and this is not financial advice. This article is only to be used for informational purposes and not as financial advice.