In parts one and two of this multi-part blog series, we’ve gone over some of the basic ways to go about improving your credit score if you’re unhappy with its current level. Credit score plays a huge role in your ability to take on debt for various reasons, and improving it can benefit you in multiple major ways.
At 1st Choice Money Center, we offer a variety of short-term loans that are often utilized to assist in raising credit scores, including installment loans, title loans and many others – and we don’t offer harmful payday loans, which are predatory and should not be offered by any reputable lender. Today’s final entry into our series will go over some of the additional ways to improve your credit score.
Get Credit for Utility and Rent Payments
You want to be sure that all your forms of debt payment are being recorded on your credit report so that you can be given full credit for those payments. While many lenders and creditors will self-report these forms of payments to the credit bureaus, there are some that don’t; this is especially true of rent and utilities.
To make sure that your non-traditional debt payment activities are being reported as well, you can look into third-party services like RentTrack or Clearinghouse that will gather the data from your rent and utility payments, then report this information directly to the credit bureaus. This is a great way to ensure that you’re getting full credit for all the responsible debt payment activities you’re engaging in.
Use Secured Credit Cards
One great hack for rebuilding credit is to make use of secured credit cards. These are credit cards that require a cash collateral deposit before you can use the card; this deposit then becomes your spending limit on the card. You can then use this card just like any other credit card, but as all your payments are being reported to the bureaus, it will help build up your credit score.
If you’re serious about improving your credit score, using a secured card is an ideal way to get started. You can also look into various lenders that specialize in providing these types of cards specifically for those with bad or low credit scores.
Add Robust Credit Accounts
Finally, if possible, you’ll want to add Robust Credit Accounts as one of your credit-building strategies. These are accounts that can vary from major lines of credit, like mortgages and car loans, to things like memberships in a certain organizations or even certain utility bills.
The idea here is to have multiple and diverse forms of debt on your report that you can be reliably responsible for paying back. This can help build your credit score over time, as it will demonstrate to potential lenders that you’re a reliable borrower.
No matter what kind of credit situation you’re in, there are always ways to go about improving your credit score – and here at 1st Choice Money Center, we have the tools and resources that can help you do just that. Get in touch with us today to find out more about our services, or visit our website for further information. We look forward to hearing from you!