Methods for better credit

Credit scoring models may seem complicated. The way to better credit, however, is quite easy. You should make loan payments on time and keep a little debt. Make some new accounts and wait for a while. Good things take time. It is not possible to speed them up.

You can hack your credit by a few ways. There are a number of methods to do so. Even though these methods are no substitute for well known older trade practices, these could boost up the credit score. You can push up the credit score if you follow certain techniques.

Request an increase in the credit limit

In case you cannot fulfill the balances or a dangerously low credit limit is imposed on you, it is an excellent idea to request your card issuer to increase the limit. Do understand that your finances will be examined to understand whether it will be possible for you to manage the increase. The answer can be negative if your credit turns out to be bad. Independent of approval or denial, the credit pull requested by you will be construed as a hard inquiry. This will result in loss of few points from the credit score. This can be worthwhile if you get what you ask for- but not otherwise.

Pay off the large balances in your credit card first

To you, these are a priority pay. There is an excellent reason for this- the balances on your credit card play havoc with the credit utilization ratio. The latter is the quantity of debt you carry compared to the total credit. It is recommended that you maintain the ratio below a minimum of 30 percent and ideally about 10 percent of your limits. It implies that you pay off those purchases which throw you over the threshold. This can be in total or in the cards individually.

Be an authorized user

Do regard this one as a credit card having training wheels. The authorized users, who gets added to the existing account of credit shareholders, get the due credit for using the card. These happen even if they are not to be held responsible for making the payments. To put in another way, it is possible to capitalize on the good credit of a loved one. In case things get bad, you can request that you be removed from the account. Your credit report concerning this part will be rubbed off as well.

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