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How to Improve my Credit Score

Not only is a credit score used to determine eligibility for a loan or credit card, but it also opens doors to many opportunities.

A higher credit score can qualify you for financial advantages such as credit card rewards with perks like cash back, negotiating power to lower rates, and no security deposits. Read this article to learn more about your credit score.

You credit score can change as often as once a month depending on your level of financial activity. You can raise your credit score in a variety of ways:


Pay your bills on time.

This is very important. Your individual payment history plays the largest role in your credit score. Even small mistakes can affect your score. A good rule-of-thumb is to always make at least the minimum payment by the due date. You can set up alerts and notifications for payments or automatic payments to eliminate late or missed payments.

Never close old credit card accounts.

Your credit score factors in your entire credit history going back to your very first credit card, including how long you’ve held an account and when you’ve used them last. Even if you don’t utilize a specific credit card, it may be better to just stop using it instead of closing the account as closing your account may lower your credit score. Additionally, with older credit cards we suggest you use them every once in a while, to keep them active.

Increase your credit limit.

For your existing credit cards, inquire about increasing your line of credit. For instance, say your credit card limit is $1,000. If they raise this limit to $2,000, then you’ve proved to them that you are trusted with a larger loan – which will positively affect your credit score. As long as your account is in good standing, you will likely be granted this request.

Remember: It boosts your credit score if you carry less debt overall, so don’t spend this full amount. Typically, try not to spend more than 30% of your available credit.

Diversify your loans.

When determining your credit score, it’s better to show that you are capable of managing multiple accounts simultaneously (like a credit card, auto loan, and mortgage). This does not mean you should open a bunch of new accounts to boost your score, this will in fact hurt your score because it comes across as financially unstable. With that said, it’s very good practice to have a variety of different credit cards and loans that you pay off regularly.

Credit Builder Loan.

Alltru offers a Credit Builder Loan that is specifically designed for those with little to no credit and works to build or improve your credit score. This is essentially taking out a loan with us, paying it off monthly, which results in the money borrowed being released back to you. We strongly encourage those who believe they fall into this category to take advantage of this excellent credit building opportunity that is unique to the financial industry.