Store credit cards have hidden risks.
Photo: Jeff J Mitchell / .
If you want to borrow money to buy a car, a house or something else of great value, It is important to have a good credit score to be granted this loan.
Therefore, it would be very convenient for you to know how to increase your score as soon as possible, especially if you need a quick loan.
For this, you must first know that your credit score has five components, and while all are important, only one can be changed quickly.
The most important component, equal to 35% of your score, is the payment history. Another component is the duration of the credit history, which represents 15%, another is the combination of credit you have, which is 10%, and another is the amount of new credit that you have opened, which is 10%, as explained in Money.
In order to improve the scores mentioned above you need to spend some time, so they will not help you if you need to improve your credit quickly.
But one element that you can change quickly is the credit utilization rate, or how much money you owe compared to your total available credit. So the fastest way to increase your credit score is to pay off your debt, and keep it low.
As a general rule of thumb, you never want your credit utilization rate to exceed 30%. In other words, if you have a credit card with a limit of $ 10,000 and you owe $ 1,000, your credit utilization rate is 10%, so if your goal is to quickly increase your score, you should try to lower that number as much as possible. low possible.
–You may also be interested: You do not have to file taxes to get a stimulus check