How to Improve Your Credit Without Compromising Your Lifestyle
Bad credit can cost you – big time! This is why you’ve been told that you need to cut back to improve your credit rating…by friends, relatives, neighbors, etc. A lot of advice is given around about what you shouldn’t and should do to improve your credit. Unfortunately, some of this advice causes your credit – and your lifestyle – more harm than good.
The reality is that you can get the things you need and improve your credit score at the same time. And though making credit card purchases responsibly is a good strategy to improve your credit, it’s not the only way that works. Here are other ways to improve your credit.
Look for a Lease/Purchase program
Companies that offer financing options to people with no credit score traditionally hook in people based on zero interest marketing with payoff dates varying between 12 and 24 months. While customers with perfect credit scores are attracted to these offers, a majority isn’t interested and doesn’t even bother applying because they imagine their credit report being slightly tarnished.
An attractive option in this scenario is a lease/purchase program unwritten with no requirement for a credit score. Crest Financial and similar companies allow merchants to attract new customers by using the term as a marketing hook. With such options, you’ll be given a time period to complete payments before ownership acquisition, but you’d be able to enjoy use of your merchandise, instead of it residing in a merchant’s warehouse.
Become Someone’s Authorized User
If you have a strong relationship with someone with a good credit score, you can ask if they could add you as an authorized user to their account. If you make it happen, your credit is going to improve with the monthly payments and purchases they make, even if you don’t conduct any transactions. But it could also happen the other way around; your credit rating will suffer if the account holder defaults.
Therefore, the best way to execute this strategy is to become an authorized user on a close friend or family member’s account. You’d also benefit from low-interest rates available for borrowers with a good credit history, but the main goal should be to improve your credit rating based on the cumulative purchases you and the account holder make.
Verify Old Information & Reduce Inquiries
One of the easiest and quickest ways to improve your credit rating is to review your three credit reports and fix any outdated information or errors that you spot. If you see an incorrect entry or two, you can file a dispute and request removal or correction. The timeframe for an incorrect entry to be removed or corrected is 10 to 30 days.
Another thing you should do is avoid excess inquiries. Every time you apply for a loan or credit, a creditor will request information from one of the three credit reporting agencies, and this request will be added to your credit report, and remain there for at least two years. Multiple inquiries can take a significant toll on your credit score. Therefore, try having multiple inquiries counted as a single inquiry if you’re shopping for similar categories within 35-45 days.
If you end up making these options work, you can improve your credit in no time. Just remember, you can normally spend while working towards a good credit rating.
Photo courtesy of: DigitalMarketingAgency
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