Credit score has always been a big deal in the United States. Every country has its own way to track and maintain its citizen’s financial activities. Germany has SCHUFA, India has CIBIL, and China has it’s Social Credit System which works quite similar to the one in the US.
As far as credit scores are concerned, has anything changed in 2020? Well, there are no major changes in the credit score rating system, however, there is a growing number of Americans who wish to improve their credit scores in 2020.
According to a study by a major credit bureau Experian, a third of the population resolves to improve their credit score this year. In this post, I have shared some easy-to-implement tips to improve your credit score in 2020.
Here Are the 4 Best Ways to Improve Your Credit Score Quickly in 2020
1) Automate Your Bills
Missing a credit card bill payment can set your credit score back by months or even years. I am sure you are aware that your monthly credit card statement has a “due date” mentioned on it. Usually, it is a month from the date of the statement being issued. Failing to make your credit card payment before the due date can be a huge blunder. This is why you should automate your bill payments.
2) Apply for a Secured Credit Card
Are you a student? Or don’t you have a credit score good enough to get a postpaid credit card?
Now you can begin building your credit with a Secured Credit Card. There are two major reasons to pay cash in advance to your credit card provider: 1) To gain their trust and 2) To build your credit. Usually, you will be asked to pay anywhere between $200-$1000 at the time of purchasing the Secured Credit Card.
3) Keep a Watchful Eye on Your Co-Signers
There is nothing wrong with helping out your kids or young relatives by being their co-signer. However, note that if they fail to pay off their bills–whether you have agreed to co-sign for a home loan, vehicle loan or a credit card loan–you are the one responsible to pay their bills. Needless to mention, you are also the one to take a credit score hit. Hence, keep a watchful eye on your “authorized user’s” financial activities.
4) Always Check Your Credit Card Balance
To boost your credit score, it is key to maintain your credit utilization below 10 percent. That means you do not spend more than 10 percent of your credit limit. To maintain a credit utilization below 10 percent, it is important to contact your credit card provider and ask them for a credit limit increase. The more your credit limit, the more you can spend. Subsequently, you also boost your credit score.
There are several other creative ways to improve your credit score in 2020, however, the ones I have listed above are easy and effortless. These are the bare essentials to boost your credit score. The above-mentioned tips will help you accomplish your new year resolution.