Everyone knows the importance of credit scores. So for these people who have not started to improve credit scores, how can they improve their credit scores quickly and healthy? Here are some basic and practical methods.
1.Apply for a credit card and repay on time
Apply for a credit card of your own name as early as possible, the starting limit may be low, but the limit will gradually rise. You can use your credit card as much as you can and use credit cards instead of cash, cash consumption cannot help you improve credit scores.
It should be noted that the credit card here refers to the primary card of your own name applied at the bank, not the secondary card of the parent or spouse.
If you are a student, you can open an account in your university’s Credit Union or any bank with your own name, and then apply for a credit card. It will also be relatively easy to apply, but the starting limit may be very low. After graduation, if you continue to stay in the United States, your credit score will continue to improve, so the sooner you apply the better.
2. Rent house in your own name and sign a formal contract to pay rent on time.
3. Opening water, gas, and gas account in your own name and paying your bills on time will also help to improve credit scores.
4. If you plan to buy a car, try to borrow as much as possible, this will improve your credit score.
5. Repayment on time, don’t overdue
Records of overdue or non-payment of bills such as hospitals, clinics, transportation tickets, water, electricity, gas, and garbage consignments may affect credit scores.
Regarding the accumulation of credit scores, there are some details that need special attention:
1. The ratio between the credit card’s bills and the total credit limit should not be too high. In the beginning, when there were only one credit card and the quota was very low, this ratio was difficult to control very low.
2. Don’t apply for too many credit cards at the same time. For example, sometimes shopping malls make you open a new credit card. If it is a one-time discount, be careful, because this will reduce your existing credit score. The main reason is that every time you apply for a credit card, bank or card issuer, Will check your credit history, every time you check your credit history, your credit score will drop a little, so try to avoid being checked.
3. When the credit score is high, the car loan and home loan are easier to approve, and you can get better interest. Similarly, the car loan and home loan with a good repayment record will help improve the credit score.