We all know that credit is a big part of our lives and the economy. But, did you know there are some hacks to getting your credit up? One easy way is by opening up new cards with small limits and use them for small purchases like gas or groceries.
You don’t need to carry balances on these cards because they will have no effect on your credit score as long as the balance remains under 30% of the limit. Another hack is paying off your card in full every month; this will keep interest rates low and your credit high.
Top Credit Hacks That Will Change Your Life!
Keep at Least Three Major Credit Cards
If you have three major credit cards, you can save yourself from being over-burdened by a single card. If one of them is compromised or maxed out, you’ll have a backup to use while waiting for the issue to be resolved. Carrying at least three credit cards will also help you avoid paying high interest rates on purchases and balance transfers because it will allow for more time for your monthly payments to be applied before the next statement goes into effect.
Finally, if you get lost without access to any of your cards and need cash in an emergency situation, a third card should provide enough money until another form of payment becomes available.
It’s All about That Credit Utilization
Credit utilization is the amount of your credit limit that you use and it’s an important part of your credit score. Regularly using a low percentage or less than half of your available credit can help moderate spending, which in turn will lower your debt-to-credit ratio. If you have a high debt-to-credit ratio, this may negatively affect your FICO® Score. In order to avoid any potential negative impacts on their FICO® Scores, consumers should regularly check their balance across all accounts and keep track of how much they are using their current balance as well as how close they are getting to the maximum percentage allowed for each card.
Increase Your Credit Limits as Much as Possible
If you’re a credit card user, there’s an easy way to increase your credit limit without having to open up another account. The best way is by simply asking the bank for more money. This may seem like a simple task, but many people don’t know that it’s possible and they end up with revolving balances month after month. If you take just 30 minutes out of your day to call the customer service line, you’ll be surprised at how quickly they can authorize an additional $1,000 on your existing card or even higher if you request it! It doesn’t hurt to ask!
Resist Those Hard Inquiries
Getting a hard inquiry on your credit report can be tough. It may not seem like the end of the world, but it is an indication that you are in riskier territory than someone without any inquiries at all. If you have experienced one or more, don’t panic and take a deep breath before deciding how to proceed.
