Learn how to increase your credit score quickly with these tips

Understand how to increase your credit score

If you’re looking for a way to quickly and efficiently increase your credit score, you’ve come to the right place! A good credit score not only opens the door to better interest rates on loans and financing, but it can also directly influence your ability to rent a house, make purchases on credit, or even get a job.

So, if you’re still not satisfied with your score, don’t worry! Here are some tips to boost your score and ensure greater financial freedom. Read on to the end!

1. Pay Your Bills on Time

This tip may seem basic, but it’s essential: pay your bills on time! Timeliness in payments is one of the main factors that directly influence your credit score.

The quicker you settle your debts, the less interest you’ll pay, and the more points you’ll gain. If paying all your bills feels heavy on your budget, start by prioritizing the most urgent ones, such as credit card payments and loan installments. Also, try to avoid leaving bills open or overdue.

2. Keep Credit Utilization Under Control

Another very important point is how you use your available credit. Ideally, you should not exceed 30% of the total limit on your credit cards. If you are using more than that, your score may drop.

To quickly increase your score, work on reducing your outstanding balance and avoid maxing out your credit limit. If possible, increasing your limit can also be a good strategy, as it helps to lower the proportional credit utilization.

3. Negotiate Old Debts

If you have outstanding debts, especially those that are past due and have been sent to collections, it’s a good idea to contact the creditor and negotiate payment.

Often, companies offer significant discounts for those willing to pay the debt in full. Once the debt is paid, your credit score should increase, as paying off these obligations is recorded in credit systems.

4. Request a Review of Your Name with Credit Services

If you have an older credit history and your name is “dirty” due to old debts, a good move is to check the possibility of a review of your name.

Some credit protection agencies, such as Serasa, offer a “name cleaning” service. In this review, you can regularize your situation, and doing so could even make your credit score rise quickly.

5. Use Credit Smartly

A valuable tip for those who want to increase their score is to use credit wisely. It’s not about buying aimlessly but about making strategic purchases that you can pay off in full shortly afterward.

This helps build a history of being a good payer, which can improve your score. However, avoid using credit to finance something you can’t pay off in the short term, as this will only generate more debt and hurt your score.

6. Consider Taking a Small Loan to Build Credit

One way to quickly increase your credit score is to take out a small loan, as long as you’re sure you’ll be able to pay the installments.

This helps demonstrate to credit agencies that you can manage your financial commitments effectively. However, the key here is to pay the loan on time and keep other credit under control. Over time, this will help raise your score.

7. Use a Consigned Credit Card

If you have trouble getting a traditional credit card, a consigned credit card can be a great option. With this type of card, you secure a more accessible credit line with lower risks of falling into debt.

Since payments are automatically deducted from your salary, the chance of forgetting to pay or delaying a payment is almost zero, which helps improve your credit score.

8. Avoid Requesting Unnecessary Credit

Each time you request a loan or financing, your credit score takes a slight dip, as this is seen as a signal that you may be struggling financially. So, avoid requesting unnecessary credit.

Unless it’s truly urgent, don’t make excessive requests for loans, financing, or credit cards. This can cause your score to drop instead of rising.

Conclusion

Increasing your credit score quickly is possible, but it requires discipline and some strategic actions. Start right now by paying your bills on time, avoiding late payments, keeping your credit utilization under control, and negotiating any outstanding debts.

Remember that maintaining a good credit score isn’t just for those looking for financing but also for having more financial freedom and securing better conditions in all your transactions. By following these tips, you’ll be on the right track to achieve a higher score and more financial opportunities!

Written by

Juliana Raquel