Increase your credit score with these quick tips

Are you trying to build your credit history, and want to increase credit score? You might want to know a few ways to use the system to increase credit score rapidly, and not waiting for the usual slow process of building it up over years.

Before you start on this campaign, you should first know that it doesn't look good on your credit history to have a lot of credit applications and you need to avoid this if at all possible. However, if you make several applications within a week or two, they are looked on as one, and won't count against you in the same way - they are viewed simply as shopping for the best rate for one loan or credit requirement.

One of the well known ways of getting a good credit score quickly is to piggyback on someone else's credit. I'm not suggesting a version of identity theft; I'm suggesting that you do this with the person's permission! It might be a parent or a good friend who already has a good credit score, and you would ask to be added as an additional user to one or more of their accounts.

Ideally, this account would be an old one, which would give you bonus points when the account was reflected on your credit report. You can be added, and need never get a credit card, so the friend should have no problem wondering if you are going to mess up his credit history with your spending. All that happens is that your record benefits from the associated credit history. All statements and information are still mailed to your friend, so he is not exposed to extra risk.

Secured credit accounts can be a quick and easy way to establish a good score. One suggestion is to open three such accounts and borrow money from each. If you separate that money and use it to pay your secured cards, it will help establish a good credit score.

Now, this will cost you money, first tying up funds to secure the cards (the cards are issued against a cash deposit) and then in fees and interest when you use them. You may also see your credit score dip when you open the accounts, for the obvious reason that your credit history has been accessed. However, you now have three credit accounts that are "Paid as agreed" on your record and it will only take a few months for you to see a good improvement on your credit score.

Most people like to pay off the balance each month, but little do they know, this is not a way to get a better score. Leaving some balance on the card earns a higher score. It shows that you can handle some burden, while maintaining expenses. Credit card companies like this, as that is how they earn their money. Try to keep the balance at less than 25% of available credit on each line. It will definitely help your score if you keep your balance percentage low.

Finally, always remember to make your payments in good time, as late payments count heavily against your credit score. If you are determined to increase credit score, you may want to make a habit of paying bills when you receive them, rather than trying to leave the payments until the final week, so that you don't risk mail delays upsetting your careful work. If you follow the directions above, you may just be surprised how much you can increase credit score in a few months.

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