5 Credit Hacks That Will Change Your Life
One of the most important things to understand about credit repair is that no matter how daunting it may seem, it is absolutely possible – and it’s actually a lot more straightforward than you might think. In fact, there are not one but five credit hacks you should be aware of that won’t just give your scores a boost…
… they will change your life in the process.
Keep at Least Three Major Credit Cards
By far, one of the best ways that you can repair your credit (and maximize your credit score in the process) involves keeping at least three major credit cards open at all times.
Now, this isn’t necessarily going to be possible for everyone, and that’s okay. But if you can, keep them open and use each one sparingly. Making three payments on-time every month will always raise your credit faster than a single payment to one card.
It’s All About That Credit Utilization
Likewise, you’ll also want to pay close attention to your credit utilization – that is, the percentage of your total credit that you are currently using on a regular basis.
For the biggest impact on your credit score, try to keep the total of all of your balances around 25% to 30% for as long as you can.
Increase Your Credit Limits as Much as Possible
This one may seem somewhat odd, but it actually plays directly into the piece of advice recommended above.
The higher your credit limits are, the lower your utilization actually is. So if you have a card with $1,000 in available credit and a $500 balance, you’re using 50% of your available credit. But if that same card could be raised to a $1,500 total credit limit, suddenly that $500 balance only represents 33% of what you could be spending.
It’s a great way to practice credit repair without really doing much of anything at all.
Resist Those Hard Inquiries
As you embark on your own credit repair journey, you may have the urge to try to apply for a new card with a lower interest rate to help ease some of the burdens. If possible, don’t do this – as applying for a new credit card will always result in a “hard pull” on your credit, which will harm your score in the short-term.
If you’re able to find other ways to fix your credit for a year and don’t have any “hard pulls” during that time, you’ll enjoy an almost immediate boost once those 12 months are over.
Focus on Those Installment Loans
Finally, one of the best ways to repair your credit involves paying down installment loans as quickly as possible. Installment loans are seen as a different “type” of credit than traditional credit cards, and they can include things like car loans, student loans, and more.
If you’d like to find out more information about five credit hacks that will change your life, or if you just have additional questions that you’d like to discuss with someone in a bit more detail, please don’t delay – contact us today.