Save thousands by improving your credit score

Want to save tens of thousands of dollars on interest to spend on things you’re more interested in? Improving your credit score will save you thousands better spent on a good bottle of wine and a fun weekend with a hot man.

What’s a credit score?

Why, darling, think of your credit score as the fabulous VIP pass to The Met Gala! It’s like the glittery gauge of your creditworthiness, letting lenders know if you’re ready to slay those borrowed dollars or not.

This magical number isn’t just for show – it’s the key to unlocking favorable loan terms and credit card glam. The higher the score, the lower the credit risk, which means you’re in for some prime interest rates. But, honey, if that score takes a dip, brace yourself for the drama – higher interest rates might just sashay into your money scene.

Credit scores are like a fabulous scale from 300 to 850, with the higher end being the A-list. Keep that score high, and you’re basically Beyoncé. And let’s spill the tea – regularly checking that credit report is your way of making sure the paparazzi (or, you know, financial mishaps) aren’t tarnishing your star.

In a (not to bust your) nutshell, your credit score is your financial crown – wear it well, slay the financial game, and always remember: good credit is never out of style!

How do you fix your credit score?

Here are seven steps to improve your credit score regardless of what it is. Do each of the following in the order presented. The first few tips will have bigger, more immediate impacts than the latter.

1. Pay your bills on time

The heavyweight champion of your credit score is none other than the Payment History, flexing its muscles with a staggering 35% influence. It’s like the K-Tay (Travis Kelce and Taylor Swift) of your financial life – demanding attention and respect. This is all about showcasing your ability to repay your bills on time properly. It’s the grown-up version of gold stars on your report card.

Picture this: You impress banks and lenders with impeccable payment habits. It’s like a financial catwalk, and you’re strutting down it like a credit superstar. “Oh, you need proof that I’m a good credit risk? Here’s my flawless payment history. You’re welcome.”

So, channel your inner financial superhero and pay those bills on time and in full. Your credit score will thank you with a standing ovation – or at least a virtual high-five from the credit gods. It’s the key to unlocking the VIP section of the financial club, where interest rates are low and financial stress is on vacation.

Now, go forth and conquer those bills like the credit superstar you were born to be!

2. Close all but your oldest credit cards

like a magical number – not too few to be a credit hermit, and not too many to qualify for a credit card circus act. FICO and lenders, however, side-eye this credit card collection like it’s a game of financial Jenga.

They fear we might go all-out and over-extend ourselves. Too much credit flexibility, they say, is like giving a toddler access to a candy store – it’s cute until things get sticky. If you find yourself overextended, you risk being in the awkward position of being unable to pay back your lenders. And trust me, ghosting your lenders is not a cool move in the financial dating world.

Now, the strategy here is to Marie Kondo your credit card collection. Keep only the classics – the ones that have been with you through thick and thin. It’s like building a credit history time capsule. Closing newer cards is the first step – bid them farewell like you’re decluttering your closet.

And remember, when it comes to credit history, older is gold. Your credit score gives a thumbs-up to longevity. So, don’t go closing your oldest credit card. It’s like deleting the epic saga of your financial journey. As for those retail cards – the fashionista’s dream – bid adieu. They offer as much value as a single sock in the laundry – not worth it.

Now, two goals: First, consolidate your credit card dynasty onto a couple of credit cards with the longest histories. Think of it as creating a credit monarchy. Second, kick those shopping temptations to the curb. Credit cards are not magic wands; they’re financial tools. So, march forward with your curated credit arsenal, and remember, a wise credit card holder once said, “With great credit comes great financial responsibility.”

Or maybe it was Spider-Man. Either way, same principle.

3. Lower your credit utilization ratio

Buckle up because we’re diving into the magical world of credit utilization – where numbers dance, and credit scores do the cha-cha. Picture this: Your credit utilization is like a financial seesaw. On one side, you’ve got your revolving debt; on the other, your available credit, both having a teeter-totter battle for supremacy.

Now, banks play the role of judgmental spectators, and they’ve got a sweet spot. Less than 30% utilization, and you’re their financial superhero – cape and all. Go above 50%, and it’s like you’re doing a credit score limbo dance – how low can you go before the financial music stops?

Spoiler alert: 50% is the threshold where your credit score does the electric slide in the wrong direction.

So, here’s the game plan: Imagine your credit utilization as a rebellious teenager, and you’re the cool parent setting some rules. “Hey, credit utilization, you better stay below 50%, or you’re grounded!” It’s a bit like wrangling a financial wild stallion – taming the percentages for a happier credit score.

Think of it as credit cardio – trim down that credit utilization, and your credit score will thank you with a standing ovation. It’s like a makeover for your financial reputation – a glow-up for your credit score. So, grab your financial scissors and start cutting down that credit utilization until your credit score is strutting down the runway like it’s at a fashion show. Because in the world of credit, less is more – especially when it comes to utilization.

Do the math, even if the math hurts.

4. Clean your credit report

Now, let’s talk about credit report drama – because apparently, identity theft and rogue robots are the new stars of this not-so-thrilling show. Imagine your credit report as a blockbuster movie; these inaccuracies are the villains trying to mess up your financial plotline. But fear not because you’re the superhero here, ready to fix those errors and save the day.

First things first, hop on your cyber-chariot and gallop over to www.AnnualCreditReport.com – it’s like the Bat-Signal for credit reports. Or, if you’re feeling old-school, give them a call at 1-877-322-8228. Once you’ve summoned your credit reports from Equifax, TransUnion, and Experian, it’s time for a dramatic reading session.

Channel your inner Sherlock Holmes and scrutinize those credit scores like you’re solving the mystery of the missing financial puzzle pieces. Look out for misspelled names, addresses that are more fiction than fact, and claims so false they make Pinocchio blush. It’s like editing the script of your financial blockbuster – because who needs inaccuracies stealing the spotlight?

But here’s the plot twist – proceed with caution. If you’ve got a history of debt collection attempts, fixing errors might open the floodgates. It’s like inviting debt collectors to your financial party; nobody wants that kind of guest list.

Sure, the journey to correcting these credit report blunders might take some time but think of it as your own financial saga. You’re the protagonist, overcoming obstacles, defeating errors, and emerging with a squeaky-clean credit report. It’s worth the effort – a bit like winning an Oscar for Best Credit Score in the financial world. So, grab your metaphorical popcorn, sit back, and enjoy the show as you embark on the epic quest to improve your credit score.

5. Do it at the gas station

Next, we’re diving into the wild world of gas station credit cards – the VIP pass to the fueling fiesta. But hey, before swiping that plastic at the Conoco buffet, let’s lay down some fuel-stained wisdom.

Gas station credit cards are like having a secret handshake with your favorite pump – exclusive, but not iffy buffets exclusive. Now, unless you find yourself doing the tango with temptation at the gas station snack aisle every day, a gas station credit card is your golden ticket to fueling up and boosting that credit score.

Picture this: You roll up to the pump, feeling like a high roller with your gas station credit card. It’s like having a backstage pass to the concert of responsible credit use. Elon Musk might be working on electric cars, but until we’re all zipping around in those futuristic machines, gas is the name of the game.

Now, here’s the secret sauce – use that gas card to pay for the fuel you would buy anyway. It’s like having your cake and eating it, but with fuel and responsible credit habits. Swipe, fuel up, and then channel your inner financial wizard by paying it off on time and in full monthly. It’s the credit score cha-cha – one step forward, no steps back.

And voila, you’re not just fueling your car; you’re fueling your credit history. It’s like turbocharging your financial reputation. Whether you’re building your credit empire from scratch or giving your existing credit history a makeover, that gas station credit card is your trusty sidekick. So, rev up those credit engines, my friend, and let the credit score journey begin!

6. Don’t apply for more credit

Hold on to your money rollercoaster because we’re about to navigate the twisted turns of credit score games – where patience is not just a virtue; it’s a financial strategy. Imagine your credit score as a mysterious date, and banks are playing hard to get. It’s a dance of interest that even Shakespeare would find perplexing.

So here’s the plot twist: Don’t open a new credit card, don’t apply for a loan, and resist the urge to snag that shiny new apartment – basically, put your credit life on pause for a year. It sounds as backward as a GPS telling you to turn left into a lake, but just like that guy who suddenly becomes fascinating the moment you lose interest, banks want you more when you’re not waving your financial flag at them.

Enter FICO, the ultimate matchmaker in this credit love story. Every time your credit report gets pulled, FICO gets a notification, probably with some dramatic music playing in the background. Now, here’s where you unleash the “really slow rhythm method” – think of it as the dance of the credit report stars.

Strategically let those credit reports be pulled apart like you’re orchestrating a cosmic ballet. It’s the financial version of playing hard to get – make them wait and create some suspense. FICO will be watching from the sidelines, wondering, “Why is this person so elusive? Are they secretly a credit superstar?”

And just like that, you’re the mysterious protagonist in the blockbuster movie of your credit life. By the time FICO gets its act together, your credit score will be the A-lister on the red carpet. So, embrace the slow rhythm, play the waiting game, and let the credit score drama unfold like a captivating telenovela. Because in the world of money, sometimes, less is more, and patience is your secret weapon.

7.  Get a secured credit card

Finally, gather ’round, financial wizards – it’s time for the sequel to your credit score saga. After your year-long credit card application detox, it’s time to bring in the secured credit card – the superhero of credit resurrection. Think of it as your credit score sidekick, ready to flex its creditworthiness muscles.

Now, I know what you’re thinking – “Fees? Really?” Yes, securing your credit superhero comes with a cost, but it’s like paying the entry fee to a financial theme park where the rollercoasters are credit score highs. Use it once a month, pay it off faster than a ninja in a speed contest, and watch your credit history do the happy dance.

It’s like a high-stakes poker game – you’re betting on your credit score to win big. And when the time is right, when your credit score has blossomed into a financial superstar, you can bid adieu to your secured credit card. It’s like releasing your sidekick into the credit score Hall of Fame.

The secret sauce to credit score repair is not some mystical potion; it’s proving your creditworthiness. Pay your bills on time – because late payments are so last season, darling – and resist the urge to juggle more financial plates than a circus performer. Overextension is the arch-nemesis in this credit score superhero saga.

So, in summary, secure that credit sidekick, let it flex its credit muscles, and when your credit score is standing ovation-worthy, gracefully retire the secured card like a victorious athlete. Repairing your credit is like crafting a financial masterpiece – one responsible payment at a time. Now, go forth, credit hero, and let the creditworthiness games begin!

More help to fix your money:

• Take Action Now: 25 Ideas to Make Cash Today in 2024
• How to Pay Off Credit Card Debt in 2024
• 3 Ways to Become Money Conscious