So you came here to learn some tricks to improve your credit score? Good for you! What I’m about to share with you are some common tricks that can help you improve your credit score.
Show you are not a flight-risk!
The first tip is to show you are not a flight risk and this may not be very simple to do but try it. Renting out an “unfurnished” apartment under your name and getting listed on the phone book may help your credit score.
Open a Bank Account
The second tip that can help your credit score is to open a checking account and/or savings account with a local bank and leave some money in there. The minimum amount of money depends on the bank’s policies so look around. Banks do compete with other banks for your business so look around. It’s safe to say at least $100 would be sufficient to open an account with most banks. I remember opening my first bank account under my name with just $20.
Note: Know your banks. Many local banks have different rates and they want your business. The goal here is to never get owned! As a wise tip, know how these banks make their money and use that knowledge to understand where they put their focus into. (I.e. Do these banks put their focus in home loans or in credit cards? Does this bank make their money off savings accounts or off of interest from automobile loans? Just look around and see where they advertise the most.) For example, if the bank’s main profitable source of income is in savings accounts, they are likely to be competing with other banks and this is good for the customer. This kind of competition will influence their interest rates to help you, so know banks!
Submit a Change of Address
This is a special hack I learned from a friend and it probably still works! This is how you do it: If you subscribe to some magazines or receive certain catalogs, send these companies a change of address. Most companies would add this change of address to their database an sell this lists (aka your info) to third party companies.
Some of these third party companies will be credit card companies that will most likely send their junk mail to your box. However, according to my friend, these are one of the easiest credit cards to start off with. Just make sure to understand the terms and be sure to pay-off your debt completely every month. Don’t forget to change your address back to your original address so your friend’s box won’t get filled with extra junk. This tip actually is pretty cool. Try it!
Getting and Using Your Credit Card
The third tip is to get a credit card and once you get one, use it sparingly. Remember that there are a lot of credit cards out there and if you were to get one, try getting Visa or Mastercard first. You can search for credit card applications online but some of the easiest cards you can get are those that come advertised in magazines that have a little card as attached as an application form.
You can try the tip mentioned above as their applications are easy but remember that they come with a catch (extra fees) so watch out for them when you apply.
I also like to add that you should never apply for many credits cards at the same time because too many applications sent at once will make you look suspicious or desperate (or both). All you need is one credit card to start out with so apply wisely. This will definitely take some time so take it one by one. Once you get your first credit card, use it for a couple of small purchases and be sure to pay it off completely every month. Congratulations! You just started building your credit history. Just be sure that you use your credit card every now-and-then for small purchases (that you know you can pay-off) and that you do not miss any payments!
Are 2 Credit Cards are Better than One?
One credit card is sufficient enough but try getting another card when necessary. For example, if you already have a Visa, try to apply for a Mastercard that offers deals and rewards. Having two credit cards is very convenient in the case one credit card cannot be used.
Note: Having two credit cards can be advantageous but some people use their second credit card to pay of their credit card. Do not do this unless it is an absolute emergency (medical emergency, natural crisis, and etc.)! You are just cheating by buying more time and you are simply extending your debt. This debt will eventually catch up to you so clear it as soon as you can! You will pay more in the end. Doing this can mess you up and destroy your credit. Keep your expenses in check by not living above your means.