The Path to Excellent Credit: Steps to Boost Your Score

To increase your credit, you need to think strategically. Timing your payments to align with the timeframe before the billing cycle ends and paying down your balance multiple times over the month will help you maintain a low balance. By making your financial circumstances work for you, you can see major improvements in your credit. 

Paying bills on time and utilizing your credit wisely (under 30% or lower) are the two most influential factors impacting your credit score. Your score depends on these components, so prioritize them to benefit from credit bureau reporting. While these are the most impactful steps you can take, there are additional tools you can use to increase your credit score. 

Beyond the above two essentials, you can do your research and fact-check past reports to see if any invalid information is negatively affecting your credit. Below, we go into greater detail on the most critical steps you need to take to boost your credit score, including the most influential steps according to scoring systems by major reporting bureaus like TransUnion. Read on to learn more. 

Reduce Credit Usage 

Reducing your credit card usage improves your credit by increasing your credit while your balance stays unchanged. Limiting credit usage also shows credit bureaus that you have financial accountability, which may encourage them to send offers that qualify you for perks like store credit cards. Some people make it a point only to save their credit cards for emergencies. By significantly reducing their credit usage, they increase their score. 

Paying Bills on Time

Paying your bills by the deadline will improve your credit score. It is one of the most significant scoring factors across credit scoring systems. Consider using automatic payments to cover the basics of what you need to pay in time to see your credit boost gradually. Hold yourself accountable by setting reminders on your calendar or placing alerts on your card accounts to stay aware of when you've reached a certain point in your balance.

Use Secured Credit Cards 

Use secured credit cards to boost your credit gradually. For those just starting out on their credit repair journey, secured credit cards can help jumpstart your financial improvement. 

With secured credit cards, you pay a cash deposit upfront. Generally, whatever you pay will match your credit limit. As you use your card and make payments on time, this collection of positive financial history will help you build your credit over time. 

Dispute and Negotiate Reporting Mistakes 

Disputing and negotiating credit debt is another tactic to boost your score and achieve debt relief. Check reports for any mistakes, such as mismarked late payments or outdated information that is no longer relevant (this applies to information that is seven years old, usually for derogatory comments, late fees, and credit collections). 

Control How You Spend Credit 

Another way to monitor your credit usage and boost your score is to control how you use your credit cards. With consistent monthly credit usage, you control what you spend and can know precisely what your balance will look like each month.

You might make a rule to put aside a certain percentage amount for purchases every month. Another approach is to use your credit toward ongoing purchases like a monthly gym membership or a subscription service that you use regularly. 

Boost Your Credit Score Over Time 

To boost your credit score, follow the suggestions above and stay aware of your payment deadlines. By making payments on time, strategically minimizing credit card usage, and monitoring your spending, you'll have an easier time tracking your balance and benefit from a boosted credit score.