Building good credit takes time. Time you really don’t have because there’s that job you need to get or that new car you’ve had your eye on. Here are some extra steps you can take to boost your credit rating.
Correct your credit report
Check your credit report for errors. If you do see any mistakes, let the credit bureau know by filing a dispute.
The credit reporting companies have to investigate the disputed usually within 30 days of the complaint. The agency will give you a copy of the results in writing, as well as a free copy of your report if anything in it has changed when the investigation is over.
Have the bureau to send out corrected versions to those who have received a copy of your report in the six months.
Pay off debt
You should be utilizing no more than 30% of your credit limit. To keep your utilization rate low, make several payments throughout the month or pay of a good portion before the next statement comes along.
Increase your line of credit
Increase your total available credit. Just don’t open a new line of credit. This could hurt your credit score from the new credit inquiry.
Besides, when you open new credit cards, you lower the average age of all your cards. This is important for your credit score. Older accounts positively impact your score.
Instead, call up your current credit card issuer and ask them to increase the limit on your card(s). Some might require a credit check, while others may approve you for a small increase without running your credit.
Don't close any old cards
Simply closing an old credit card with a negative payment history will NOT erase the bad information.
The length of your credit history makes up 15% of your FICO score, and credit mix makes up 10% -- so you might want to keep any retail cards open, as well.
Become an authorized user
Ask a relative or spouse with a good credit history to add you as an authorized user on their credit cards. Even if you don't have access to the card itself, you'll gain the credit benefits of increased utilization. Plus, your length of credit history will go up.
If the cardholder misses payments, however, your credit is on the line, too.
If you have any questions about credit cards or how you can boost your credit, the employees at Hawaiian Tel Federal Credit Union can help. They have branches throughout Oahu and one on Maui for your convenience. Since chartering 81 years ago, this credit union has been committed to helping Hawaii residents achieve their financial dreams. Follow their Facebook, Twitter, and Instagram for news and updates, or call the credit union at 832-8700 on Oahu or toll-free at (800) 272-5255 with any questions.