Missing out on credit card payments can lead to a lower credit score, which can cost you more as it means higher interest rates. However, this doesn’t have to last forever. Here are some hacks to boost your credit card score in seconds.
Let your accounts age
Keeping your old accounts open can help your credit score as it means older entries on your report. So, don’t follow the policy of closing as many accounts as possible. Instead, use your old accounts for small transactions once in a while, but make sure you pay off the amount immediately.
Use several credit sources
Don’t rely on only credit cards as your source of credit. Using a mix of credit, such as personal loans, mortgages, car loans, and other types of credit, can increase your credit score as well. However, it is not advisable to take out a loan you cannot repay.
Utilize less of your available credit
Using your available credit in excess also harms your credit score. This means having maxed out credit cards will lead to a lower credit score. It is suggested you use only 5% of the credit available to you, so your credit score does not decrease due to high utilization.
Catch up on late payments
Late payments can take a toll on your credit score. The best way to avoid this is to set alerts so that you don’t miss making payments. In case you do have a late payment, try contacting your credit card issuer and ask if they can forgive this, especially if you are generally regular at paying off your dues.
If this doesn’t work out or if you are extremely late, ensure you catch up on your payments right away. It’s better to avoid delaying the payments more so that your credit score doesn’t face the brunt of it.
Request an increase in your credit card limit
Your credit score can also get a small boost by an increase in your credit card limit. If your card issuer approves the increase, it can up your credit limit and lower your credit utilization, which is beneficial to your credit score. This can also help you open a new credit account. However, make sure you don’t open too many at once. Doing so can be a red flag and instead lower your credit score.