How could I increase my credit score?

Question

My credit score is stuck at 670. I have a $2k limit and only spend $75/month. It’s on autopay as well.

How can I increase this?

Scott E. · Answer

If you only have 1 credit card that you only spend $75 a month on, that's not going to move the needle much.

When I was getting started somebody gave me simple advice, which I followed, which got my credit score(s) into the low 800s. Basically the advice is just to open 3 different types of tradelines and pay them all on time. Very simple.

1. Get a credit card. Put enough on it to carry a balance but never more than 25% of your credit limit.

2. Buy a car. Make your payment on time every month. Pay extra if you want.

3. Buy a house. Pay your mortgage on time every month

Do this for a year or two and your credit score should skyrocket from where it is now.

Thomas Tsitouridis · Answer

Here’s how I did it, and currently in the 800s

download the credit karma app. there are sections that tell you what you need to do, to be in the “green” zone

Such as….

PAYMENT HISTORY

0 late payments is “green” zone

CREDIT CARD USE

0-9% (of total limits) use is “green” zone

DEROGATORY MARKS

0 is “green” zone

CREDIT AGE

9+ years, and not much you can do here. Good thing is that it has a medium impact

TOTAL ACCOUNTS

21+ accounts is “green” zone  they don’t all have to be open, just opened throughout your history.

HARD INQUIRIES

0 is “green” zone, but low impact so don’t worry much about it especially if you are opening accounts to achieve the 21+ accounts

The best part?

None of this really matters =)

You can always put proeprties under an LLC and use commercial loan which are typically based on the asset performance.

Devin Peterson · Answer

There's more than just the factor you listed that goes into a credit score. For instance,

Length of history - longer you have a tradeline, higher the score. Only time helps here

revolving utilization - try and keep all cards and loan < 30%

payments - be on time!

number of accounts open - this seems to be the crux of your issue not knowing more than what you mentioned, it may even be the case you don't have a lot of tradelines open and there isn't enough consumer data to increase your scores. - Tip. apply for a low interest card, or something you can utilize to your advantage (airline card, point rewards card, etc.) Buy something, pay it off. Buy something again, pay it off. Don't over leverage. stick to small purchases to establish a routine use of the card. this will help over time. gl.

Randy Rodenhouse · Answer

There are many things you can do to improve credit.  Here are 3 simple ones:

• Pay your bills on time: Late payments can have a negative impact on your credit score. 
• 
• Keep your credit utilization low: Your credit utilization is the amount of credit you're using compared to your total credit limit. High credit utilization can negatively impact your credit score. Try to keep your credit utilization below 30% to improve your credit score.
• 
• Check your credit report regularly: Errors on your credit report can negatively impact your credit score. If you notice any errors, report them to the credit reporting agency to have them corrected.

Trevor Oldham · Answer

A score of 670 is a good start, but there are definitely ways to boost it even higher.

One thing you could try is requesting a credit limit increase on your current credit card. If you've been consistently making your payments on time and not using your full credit limit, your credit card issuer may be willing to increase your limit, which can lower your credit utilization rate and improve your credit score.

Another strategy is to apply for another credit card, but be sure to do your research and find one with a lower interest rate and no annual fees. Having multiple lines of credit in good standing can also improve your credit utilization ratio and overall credit history.

How could I increase my credit score?

Most Popular Reply