Want to buy tickets to Bali but don’t have enough credit score? Does Lon application keep getting rejected due to a low Credit score? Well, then, my friend, you require my help as I am going to spill to you my secret credit card hacks to improve your credit score.
Before I begin, do you know what credit score is? A credit score is a set of numbers which illustrates a card holder’s creditworthiness. This score is used in gauging if the borrower can repay the loan on time. This score depends on the credit history.
Hacks which Build up your Big Rewards
Now that we have established what credit score is, allow me to give you my credit card hacks to build big prizes.
Hack 1: Clear the bills on time
Are you paying your monthly credit card or loan payments on time? If it is a no, then you may end up losing some valuable points from credit scores. Ensure to pay your credit card bill and loan payments on time to maintain a record of on-time payments to impress the credit departments.
You can use my methods to remind yourself, and they are:
- Set alarm reminders on your phone
- Mark your bedside calendar, if you have one.
- Ask the credit card company or lender to deduct the respective amount from your bank account on the due date
- Log in to your loan or credit card accounts to set notifications either in the form of email or text message when the due date is approaching.
- Clearing bills on time is the easiest credit card hack, and hence, it is my #1.
Hack 2: Minimize the usage of credit
The credit utilization ratio is the amount of credit you are owing divided by the amount of your credit limit. The reason I told you this definition is to say to you that this ratio under 10%. If this ratio is going above 30%, then you may hurt your credit score. This credit card hack is equally crucial as my hack #1 because it also immensely helps build your credit score.
You can use my methods to minimize your ratio, and they are:
- If your ratio is high, then clear the balance twice a month instead of removing it once a month. The additional payment that you are making will, in turn, keep your utilization ratio extra low.
- Try not to carry extra debt on your credit, as this also affects the credit utilization ratio. If you do, then try consolidating all the credit card debt at a lower interest rate.
- Use your credit card where it is required. Use a debit card, PayPal, do bank transfers wherever possible, or pay in cash.
- Read your credit card emails for offers and deals, which can fetch more credit score upon taking those offers and discounts.
Hack 3: Shrink your debt to income ratio
The obligation to income ratio is self-explanatory; it is the amount of debt you have divided by the amount of income you are making. If this ratio is high, it will disturb your credit score, so you need my credit card hack.
Bringing down this ratio will not just improve your credit score, but you will see your loan application getting approved quickly.
You can use my methods for clearing your debts, and they are:
- Understand your cash flows and create a budget accordingly. Then you must stick to this budget and not give in to any temptations.
- Please make a list of all your debts along with their interest rates and rank them. Like this, you will know which debt needs to be cleared shortly and what obligations you can take in the future.
Hack 4: Do not close your old credit cards
Do you have credit cards that you are no longer using it, but have a long history standing as a proof of you being responsible with debt? Then do not, I repeat, do not close these credit cards. These can become a shred of extraordinary evidence that contributes to building up a better credit score. Take this credit card hack seriously and leave such credit cards open even if you have switched to a new card or rarely use such credit cards.
Shutting down the card can make you look like you are new to the credit scene, although you are not. Be mindful of this, and just let the credit card, but do not forget to check any annual fees while considering your options.
Hack 5: Stay observant
Once you follow all my above credit card hacks, then this hack will become a cakewalk for you. All you need to do is be consistent. Easy isn’t it? Continue making all your payments on or before due dates and mindfully spending.
Monitor your credit card transactions to keep track of your credit score and check the report regularly. If there is any error, then inform the credit department immediately.
If you have made any credit-damaging errors, then do not fret. Their impacts will fade away as the years pass by.
I hope you find my credit card hacks worthwhile to build your credit score. My last advice is to be patient and consistently follow the above hacks, and you could also take the help of a credit card validator. You will see your credit score improving to a great height. Then you can buy those economy class plane tickets to Bali or Paris and see your loan application not getting rejected.