To get the best deals, you look around. To go to the gas station where you can fill up for 5 cents less, you have to pass by three others. To get the final bit of toothpaste out of the tube, you resort to using a rolling pin.
You’ve got some serious skills as a saver.
Yet, there is one three-digit figure that keeps costing you money: your credit score.
You realize you need to do more to raise your grade, but you aren’t sure how.
The good news is that there have never been more opportunities to improve your score.
Here are three simple things you can start doing right away to improve your grade:
Use a Secured Credit Card to Establish a Credit!
You are currently receiving a regular income. In other words, you’re being fiscally responsible. It’s time to start working on improving your credit. With what should one begin?
Obtaining a secured credit card should be the first step.
A secured credit card can be thought of as a cross between a debit card and a regular credit card. The limit on your secured credit card is the amount you’ve loaded onto the card from your bank account.
If you set up automatic payments for your credit card, you may rest assured that your payments will always be made on time, a positive indicator for credit bureaus. 1
The Secured Chime Credit Builder Visa Credit Card2 is one popular alternative that doesn’t charge annual fees.
This card’s elegance lies in its understatement. A $200 direct payment is all that is required to be eligible for this application. You can’t use Chime unless you have a Chime Checking Account. If so, then you may consider yourself set. It’s quick, it’s online, and it can be done in a few minutes.
If you’re worried about how signing up for this card might affect your credit score, rest assured that there is no annual fee, interest, or credit check required.
Accumulate a Positive Payment History With a Credit-building Loan!
Are you interested in a secured credit card but lack the means to make the initial deposit? An alternative approach can achieve the same goals. A loan designed to help one establish or improve their credit is known by that name.
Companies like Self Credit Builder Account4 are just one option among many that provide loans specifically designed to improve credit. A person’s credit score and savings account balance might both increase simultaneously while using Self.
You get a loan, but the funds are stored in a CD at the bank rather than being transferred to you immediately.
Self will update your credit report at all three bureaus6 as you make timely loan payments. If you take out a loan and pay it off, you’ll get your money back, less any interest and fees.
There will be no credit check performed if you are accepted.
Please Begin Sharing Your Monthly Utility Costs!
Each month, you probably have a laundry list of bills that must be paid. Regrettably, credit bureaus rarely report on-time payments.
But now you may improve your credit scores without changing your spending habits by reporting your monthly bill payments to the credit agency Experian.
In order to improve your credit score, you can sign up for Experian Boost, a free program that will allow you to record your monthly payments for things like utilities, cell phones, and streaming services. It’s possible that rent can be included as well7.
You may quickly and easily check your bill-paying history for the past two years by signing up on Experian’s website and linking your bill-paying bank or credit card.
Can You Buy a Car if Your Credit Score is Under 600?
I have a CIBIL score of 600; am I eligible for an auto loan? Yes. Even if your credit isn’t perfect, you can still qualify for an auto loan.
On the other hand, the potential negative is that you are more likely to be charged a higher interest rate in comparison to borrowers whose credit scores are at a good level, which is anywhere from 750 and up.
As a result
Improving one’s credit standing is crucial to one’s monetary well-being. You can utilize a secured credit card, a credit-builder loan, the payment of your monthly bills on time, or some combination of these strategies to improve your credit score.
Which option you go with (and which one is better) hinges on your own monetary position.