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10 Proven Strategies to Boost Your Credit Score from 650 to the 800s in a Year.

Hey my finance family!

I'm Chantele and have been building my credit score since 2017.

In 2017, I applied for my very first credit card. I had been told that credit cards were bad and to avoid them, but I also was told that the only way to build credit was to have one lol.

After over 6 years, I've learned that credit cards are not bad, and you just need to know the rules in order to play the game and win! Your credit score plays a significant role in your financial well-being, affecting your ability to secure loans, obtain favorable interest rates, rent an apartment or even purchase a home. If your credit score currently sits at 650 and you're aiming for the coveted 800s, here are ten proven strategies to help you achieve that goal within a year:

1. Know Your Current Credit Situation: Obtain a copy of your credit report from all three major credit bureaus—Equifax, Experian, and TransUnion. Review each report carefully for errors or discrepancies that may be negatively impacting your score. (A tool I use is, Check Your Free Credit Report & FICO® Score - Experian , but there are others out there, but this one has all that you need.)

2. Pay Your Bills on Time, Every Time: Consistently paying your bills on time is one of the most crucial factors in determining your credit score. Set up automatic payments or reminders to ensure you never miss a due date.

3. Reduce Credit Card Balances: Aim to keep your credit card balances well below their credit limits, ideally below 30% utilization. Paying down existing balances can have a significant positive impact on your credit score. Tip: Ask for a higher limit every year on each card, this will lower your utilization percentage. My utilization is at 2% because of this yet I use credit cards every day! Never use more than you can repay! Keep a budget and stay on it until you are a master of credit cards.

4. Avoid Opening New Credit Accounts back-to-back: While having a diverse credit mix can be beneficial, opening multiple new accounts within a short period can signal risk to lenders and temporarily lower your score. Focus on managing your existing accounts responsibly.

5. Increase Credit Limits: If possible, ask your credit card issuers for a credit limit increase. This can lower your credit utilization ratio as stated above, positively impacting your score, as long as you don't increase your spending to match the higher limit.

6. Become an Authorized User: If you have a trusted friend or family member with a long history of responsible credit use, consider becoming an authorized user on one of their accounts. Their positive credit behavior can potentially boost your score.

7. Diversify Your Credit Mix: In addition to credit cards, consider adding installment loans, such as a car loan, house purchase or personal loan, to your credit portfolio. Responsible management of different types of credit can demonstrate your ability to handle debt responsibly.

8. Address Negative Items: If you have any negative items on your credit report, such as late payments or collections, take steps to address them. Settle the debt through payment plan and write a letter asking them to remove the debt from your profile after payment is complete. (You don't need a repair company to do this you can do it yourself.) I've done this in the past.

9. Monitor Your Credit Regularly: Stay vigilant by monitoring your credit score and reports regularly throughout the year. Many banks and credit card companies offer free credit monitoring services, or you can use reputable third-party services. One is listed above.

10. Practice Patience and Persistence: Building excellent credit takes time and discipline. Stay committed to your financial goals, stick to your plan, and celebrate milestones along the way. With patience and persistence, you can achieve a credit score in the 800s and unlock new opportunities for financial success.

By implementing these ten strategies consistently over the course of a year, you can significantly improve your credit score from 650 to the 800s. Remember, good credit is a valuable asset that opens doors to better financial opportunities, so invest the time and effort to cultivate it wisely. Your future self will thank you for it!

Thank me later!

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