Credit Hacks To Raise Your Score

A credit score is an important number that determines eligibility for credit, the interest payment for credit, and in some cases even housing eligibility or qualifying for a job. The credit score is generated by a computer. Like all computer algorithms, it can be hacked. You may often wonder what ways exist how to increase credit scores.

To understand credit hacks to raise your score, you must know how the program works. Fortunately, the credit score providers tell us how credit scores are calculated, so we don’t even have to hack that part. Your credit score is calculated based on the information in your credit report. Therefore, hacking your credit score means hacking the information in your credit report.

The most important component of how to increase your credit score is payment history. Improving your payment history is easy, but time-consuming. Make on-time payments. Don’t have any payments that are not on time. 

Another important component of how to increase your credit score is the length of your credit history. The best credit score hack for this part is to never close your oldest credit accounts, even if you don’t need them. That old credit card that is sitting in the back of a drawer somewhere is your ticket to long credit history and a higher credit score.

Next up with how to increase your credit score is credit utilization. This is the easiest part when it comes to credit hacks to raise your score. Your credit score takes into account what percentage of your total overall available credit you are using. Fixed loans like car loans and mortgages are not considered as available credit since you can’t retake cash from those loans as you pay them off. For most people, available credit is determined by credit limits on accounts like credit cards or equity lines of credit. The lower the percentage the better for your score, so paying down the balances of these accounts increases your credit score. You can also hack the available credit part. Ask your credit card company to boost your credit limit. A higher credit limit equals lower credit utilization.

If you have a trusted relative with good credit, a good credit hack to raise your score is by linking to an account by having them add you as an authorized user. Then, their good credit gets shared onto your credit report boosting your score as well.