Your credit score is the cornerstone of your financial identity. It can influence everything from how much you can borrow to where you can rent and in some cases, whether or not you land a job. So, it’s pretty important that you start to build it as early as possible.
We all have to start somewhere but the good news is that there is plenty of tricks to nudge your credit score up as quick as possible:
- Download your credit report
You can’t raise your credit score if you first don’t know which debts you owe. By downloading your credit report, you can identify which accounts are delinquent and any that are an error. You can also identify which payments to prioritize.
- Schedule automatic payments
Consistently paying bills on time, and avoiding delinquency, is one of the biggest contributors you can make to increase your credit score. Automating your bill or student loan payments will help ensure you never miss a deadline. Despite automation, you will need to continue managing your budget and accounting for amounts to be withdrawn to avoid declined payments.
- Refinance your student loan debt
If you’re part of the pool of Americans who owe $1.4 trillion dollars in student debt use it to your advantage. By consolidating your student loans and refinancing at a lower rate you reduce your monthly student loan payments and have less chance of defaulting.
- Avoid multiple “hard inquiries”
Every time you apply for a loan, the potential lender needs to access your credit history, which results in a “hard inquiry” being pulled. Keep hard inquiries to a minimum by only applying for a loan that is a likely match for your situation or products which have “soft inquiries” such as you doing a self-check on your credit score.
- Show commitment to your job
If you are job hopping every year chances are you’ll face inconsistencies with your income and have trouble paying off your debts. Additionally, lenders will find you at risk for defaulting on future payments. To ensure you are making both ends meet and paying off your debtors, stick to your current role and create a monthly budget for paying your lenders.
Looking to finance a large purchase and want to build credit at the same time? Consider using a Boro Personal Loan. Learn more here!