Four ways to increase your credit score before the end of 2021


YOUR credit score is important when applying for a credit card, loan, or mortgage – and there are easy ways to increase it fast.

This could be useful if you want to start 2022 with a new financial goal.


We explain how to quickly increase your credit score in several ways.Credit: Getty

A bad credit rating makes borrowing more difficult, which means you could either get an offer worse than advertised or be rejected altogether.

FICO, the most well-known credit scoring system, and its rival VantageScore both use a range of 300 to 850 points.

Naturally, the higher your credit score, the more likely you are to get the best deals.

A good FICO score is between 670 and 739, while 740-799 is considered very good and anything above 800 is excellent.

Meanwhile, VantageScore considers a score between 661 and 780 to be good.

Below we show you how to increase your score before the end of the year.

1. Pay your bills on time

Your payment history is the most important factor that goes into your credit score, according to the credit reporting company Experian.

In fact, it makes up 35% of your FICO score, while four other factors make up the remaining 65%, he added.

In other words, an easy way to increase your credit score – and avoid damaging it – is to pay all of your bills on time.

This way, lenders are also more likely to accept you when considering extending new credit to you.

Plus, you’ll avoid late payment fees which means you’ll have more money.

Once a payment is 30 days late, credit card companies will report it to major credit bureaus.

To avoid this, set up automatic payment if you can.

2. Reduce your debt

The second most important factor that goes into your credit score is the amount of your debt.

If you have a lot of debt, it could hurt your score even if you make the minimum payments due each month.

This applies if you use more than 30% of your available credit.

In other words, if you have a limit of $ 4,000, make sure you don’t spend more than $ 1,200 on the credit card.

To lower your so-called credit utilization ratio, try to pay off as much debt as possible and make more than the minimum repayment.

Consolidating your debt with a balance transfer could be a good thing if you are eligible or want to get a consolidation loan.

3. Report rent payments

Renters will want to make sure their rental payments are included on your credit report.

Similar to the first tip, this is a way to show lenders that you are a reliable borrower who will make payments on time.

Rental payments are not included automatically, instead you can use services like PayYourRent or CreditMyRent.

The first is free, but your landlord will need to be registered, while the second charges a fee, so think carefully if it’s worth it.

4. Correct any errors on your report

Finally, it is important to check if there are any errors in your credit report.

It comes as the Consumer Financial Protection Bureau found that complaints about incorrect information reached an all-time high last year.

You are generally entitled to a free copy of your credit report every 12 months from each of the three national credit reporting companies.

These agencies include Equifax, Experian, and TransUnion.

However, due to the Covid pandemic, you can get free credit reports every week until April 2022.

You can order it from, the only authorized website for free credit reports, according to the Federal Trade Commission.

You can also call 1-877-322-8228.

A money expert explained how to build your credit score without getting out of a credit card.

Earlier this summer, The Sun spoke to Jen and Travis Smith about how the challenges of not spending helped them pay off $ 78,000 in debt over two years.

Money Expert Reveals How To Boost Your Credit Score Without Getting Out Of Credit Card

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