Reaching a Higher Credit Score to Get a Better Credit Card

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Credit cards can be your best friend or your worst enemy. They are great when you’re in a bind financially, but that bind can put you in another bind if you’re unable to pay back the balance on your card and it begins to accrue interest. It could have the snowball effect until you find yourself unable to pay back any debts and unable to obtain any new credit lines. Now what? Are you looking for a better credit card, but unable to qualify? The following are some ways you may be able to reach that higher credit score.

1. Rebuild With a New Credit Card

It probably sounds impossible, but there are ways you can rebuild your credit by obtaining a new credit card. You won’t get that good deal you’re looking for right away, but you could get a card that will help you work towards good credit. Some things to look for when picking which card to apply for include:

  • Look for a card with a low credit line. More than likely that’s all you’ll qualify for anyway, but with a lower credit line, you can’t get yourself into much more trouble. With that low credit limit, you’ll be able to more easily manage it, which will show up as a positive on your credit history.
  • Look for a card with a low APR. You want your annualized interest rate to be as low as possible. If you don’t plan to keep a regular balance on the card, this isn’t quite as important a factor, but it’s still something to consider.
  • Look for a card with low annual fees. Annual fees are part of what credit card companies profit from. Again, you’re trying to keep your costs at a minimum so it’s easy to manage. The lower the annual fees, the better.

Keep in mind the way credit bureaus calculate your credit score as you move ahead with a new card. A whole 35% is based on payment history, and 30% is based on your available credit and how much you owe. 

2. Start Paying On Time

If you have a history of not being able to pay your creditors on time, decide today to change that. You may have to get a second job or sell some things, but once you get into the habit of paying your debts on time, it will become easier to do. 

If you are unable to make a payment, contact your creditor. In some cases, though not all, they can offer you an extension. Such extensions allow individuals like you that little bit of extra time needed to get their finances in order and make their payment. Really anything you can do to show potential lenders you’re responsible with the credit you have will help you obtain a future credit card.

3. Check Your Credit Report for Mistakes

Often times, individuals don’t realize their credit score contains mistakes that are bringing them down. It could have been that someone transposed just one digit of a social security number wrong, so a negative mark went on your account when it should have gone on someone else’s. It could also be that a date was entered wrong, so it looked as though you paid an account late when you actually had it paid on time. 

When you do find mistakes on your credit report, you can dispute them with Equifax, TransUnion and Experian. It’s simple to do online, and you can call a representative directly as well. Be sure you have the proof and information needed to dispute the items, and double check at a later time to ensure they were removed from your report.

4. Stop Hanging Out Around Your Credit Limit

With a credit limit of $500, you shouldn’t keep the debt around $500. When you make a purchase on credit, pay it off as soon as you can. Hovering around your credit limit not only looks like you are struggling financially, but it increases utilization. Higher utilization means a lower credit score. 

Some options to be able to do this include making smaller payments on your card throughout the month or asking to raise your credit limit all together. Both scenarios will keep utilization at a minimum.

Let Us Help You

At Coast Tradelines, we are committed to helping individuals boost their credit scores, so they qualify for the credit cards they desire. Contact us today at 202-945-9556 or fill in our online form and let us help you with your credit.