A good credit score for a college student should be at least over 500. Your credit score indicates whether you can get a loan or apply for a credit card there; you want it to be high as possible. If you have a credit score of less than 500, don’t worry; there are still a few things you can do to get right back on track. Here are 9 steps you can do to increase your credit score and get the loan you need.
Pay all your bills monthly and on time
Payment history has one of the biggest impacts that affect your credit score by 35%, so be reliable and pay your bills on time to have a decent credit report and a high credit score so the banks and credit card issuers trust you and your ability to pay your loan on time. To have a higher credit score and a good credit report, you must pay your debts and lower your balance on your credit account; the lower it is from your credit limit, the lower the credit utilization ratio, which leads to a higher credit score.
Request a copy of your Credit Report
You may always want to check your payment history and credit report for mistakes or keep track of your previous debts or loans. TransUnion, Equifax, and Experian, the 3 major credit bureaus, will provide you with a copy of your credit report once a year. You could use your copy as a way to know some of the reasons why your credit score doesn’t increase.
Check your credit report for any errors
A single or minor mistake on your credit report can significantly lower your credit score. Check your credit report for errors from the three major credit bureaus. After you’ve identified all of the errors, file a dispute and also have them rectified as soon as possible; you’ll notice a significant improvement in your credit score within a few days.
Increase your Credit limits
If overspending is not your problem, ask your credit card issuer to get a higher limit without the “hard” credit inquiry. Having a high credit limit while your balance stays the same will lower your credit utilization, improving your credit.
Open and apply for a credit card only as needed
Believe me, and you don’t need to open another credit card just to have a better credit mix. Opening too many credit cards can affect your credit score and credit report; you’ll also be tempted to spend over your limit, which is not good feedback for your report.
Keep unused credit cards
Keep your old and unused credit cards as long as it doesn’t cost you any money. Having an extra unused credit card increases your credit limit, which is a smart idea to lower your credit utilization ratio, leading to a higher credit score.
Become an authorized user
If you know someone who has a clean and long credit card use with a high credit limit, ask to be one of the authorized users on her/his account. You don’t have to use or know his/her credit account; what you want is a significant record that could fatten and improve your credit history or file and low credit utilization ratio.
Make a small multiple monthly payments from time to time
If you’re able to pay your debts and balance from time to time by making small payments throughout the month, expect your credit to improve. Making multiple payments in a month, no matter how small it is, can lower our credit utilization ratio and have a better payment history that can improve your 600 credit score.
Ask for help from the credit professionals
If you’ve been trying so many ways to increase your 600 credit score but still wouldn’t be able to reach higher than average, you may need to ask for professional help. There are tons of credit counselors that you can hire to help you create a budget, create a debt management plan, and organize your finances.
If you want to maintain your credit score above average, you should ensure that your credit card balance is low and always pay your Debt on time.
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