The credit score is a measure used by banks and financial institutions to evaluate a customer’s ability to pay. The higher the score, the greater the probability of getting loans, financing and credit cards with better conditions.
Therefore, it is important to know how to increase your score in a short time. If you are going through a time of low credit card score, know that it is possible to improve it with some simple tips that can be implemented in your routine.
To increase your score in a short time, it is possible to adopt some measures such as keeping your bills on time, using your credit card consciously, diversifying your credit profile, keeping your registration data updated, negotiating your debts, requesting a review of your score and maintaining a good relationship with your financial institutions.
Continue reading this article to learn in more detail about each of the tips mentioned above.
Tips to increase your score quickly
Raising your credit score can be a challenging task, but by following a few tips you can increase your score in no time.
It is important to be aware of your bill payments, your situation with banks and creditors, in addition to the number of accounts you have.
To help you with this task, we have listed 8 essential tips to increase your score in a short time:
1- Keep your accounts up to date
One of the main ways to increase your score is to keep your accounts current. Keeping your accounts on time is one of the most important measures to increase your credit score in a short time. This is because the punctuality of debt payments is one of the main factors considered in defining your score.
When you pay your bills on time and avoid delays or pending payments, you demonstrate to financial institutions that you are a good payer and have a healthy financial capacity. This can contribute to increase your score and improve your chances to get credit with better conditions.
To keep your bills on time, it is important to do some financial planning and organize yourself to pay your bills on time. If you have trouble paying all your bills on time, you may want to prioritize those with higher interest rates or that may create more difficult debt to pay in the future, such as credit card bills
2- Use your credit card consciously
The credit card can be an ally to increase your credit score, as long as it is used consciously. This means avoiding accumulating debts that could compromise your ability to pay.
When using a credit card, it is important to keep in mind that the invoice amount must be paid on the due date to avoid interest and penalties. In addition, it is recommended that you limit your credit card spending to an amount that can be paid without compromising your finances.
Another important tip is to avoid delays in paying your credit card bill. This is because non-payment of the invoice can generate interest and fines, besides being considered a late debt payment, which can hurt your score.
3- Regularize your registration status
Keeping your registration data up-to-date is crucial to avoid problems with your credit score, and thus increase your score.
This is because outdated or incorrect information can hurt your score and make credit approval more difficult.
To keep your registration data up to date, it is important to inform the financial institutions of any changes in your address, phone number or e-mail address.
In addition, it is recommended that you regularly check your registration with credit protection agencies to ensure that all information is correct.
4- Avoid opening too many accounts at the same time
Opening too many accounts at the same time can hurt your credit score in the short term, as it indicates to financial institutions that you are seeking too much credit.
This practice is known as “spreading the risk” and can be interpreted as a sign that you are having financial difficulties or that you are not managing your finances properly.
In addition, each credit application generates a query into your credit history, which can lower your score and make it more difficult to obtain credit in the future.
So it is important to carefully evaluate your credit needs before opening a new account or applying for a loan or financing if you want to increase your score in a short period of time.
5- Diversify your credit profile
Having a diversified credit profile can contribute to raising your credit score in a short time. This is because credit diversification demonstrates to financial institutions that you are able to manage different types of debts and have a healthy financial capacity.
To diversify your credit profile, you can apply for different types of credit in your name, such as loans, financing, and credit cards.
However, it is important to use each type of credit conscientiously and keep your accounts up to date so as not to compromise your credit score.
6- Negotiate your debts
If you have outstanding debts, try to negotiate with your financial institution. Many times, it is possible to get better payment conditions, such as discounts or installment plans.
There are several companies that offer good installment plan conditions so that you can pay off your debts, as well as lower interest rates.
If your intention is to increase your score in a short period of time, it is essential to pay your debts as soon as possible.
When negotiating your debts, try to keep an open dialogue with the financial institution and present a realistic proposal that is in line with your financial possibilities. This can help you resolve the outstanding debt and increase your score.
7- Request a review of your score
If you are having trouble increase your score, an alternative is to request a review of your score with the credit protection agencies. It is possible that there is some incorrect information on your record or that your score is not reflecting your current situation.
To request a review of your score, you must contact the responsible agency and provide information that proves your current financial situation, such as proof of income or bank statements.
8- Maintain a good relationship with financial institutions
Maintaining a good relationship with your financial institutions can be important for increase your score. This includes keeping your bills current, using your credit card wisely, and avoiding delays or pending payments.
When you have a good relationship with the financial institutions you are a customer of, it will be much easier to get a loan or financing later on.
In addition, you can take advantage of benefits offered by financial institutions such as loyalty programs and discounts on financial services, which can contribute to increase your score.
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