If you are looking to increase your credit score, you are not alone.  A favorable credit score means better interest rates and an overall better outlook for your finances. With that being said, it does take time and persistence to bring up your credit score.  With that being said, there are some tricks you can implement to help speed up the process.  Whether you are looking to purchase a home or buy a car, there is no way to get around having good credit.  So if you need to build up your credit score, start today with these tips and tricks.

1. Pay off those credit cards

If you can swing it, pay off your credit cards.  This is one of the best ways to increase your credit score.  By doing this, you will help positively affect both your payment history and credit utilization ratio. Both of these factors carry a considerable amount of weight when it comes to your credit score.  Keep in mind, the section of your credit report that shows the amount owed by you, is updated on a monthly basis.  So paying down your debt is a key way to see an immediate impact on your score.

2. Request a credit limit increase

Just as we mentioned above, when you pay down debt, you lower your credit utilization ratio (this accounts for 30% of your score).  This is helpful when you are looking to increase your credit score.  You can also lower it by increasing your available credit.  All you have to do is call your credit card company and ask for an increase in your credit limit.  Just make sure to find out if they will need to perform a hard pull on your credit report as this can cause your score to make a temporary dip in points.  

3. Try to become an authorized user  

Becoming an authorized user on someone else’s credit card is another quick way to increase your credit score.  With that being said, you would only want to be added onto a person’s card if they are great with timely payments.  If you sign on to be an authorized user on a credit card that misses payments every other month, you obviously are not doing yourself a favor.

4. Sign up for credit boost services

Many lenders look to your FICO® Score to determine whether to lend to you or not.  The issue with a credit score is that it does not give a complete financial picture.  For this reason, both FICO and Experian have new services to help with this. UltraFICO and Experian Boost, are services that take your bank account data and work that into your credit score.  

UltraFICOTM will look at all your financial accounts  such as checking and savings. It pays attention to your balances, account age, overdrafts, as well as bill payments.  With Experian Boost, they look at your bank account for payment information for bills like utilities and telecom services.  On time payments will be factored into your credit report to help increase your credit score.

5.  Pay off collection accounts

If you have any collection accounts, try and pay them off. With that being said, this will also move your collection account to the front of the line potentially causing your credit score to drop.  What you do want to do is negotiate the reporting status of the account with the collection agency before you pay it off. After paying it off, double check your credit report to confirm it was indeed removed. This will then help your credit score.