How to Increase Credit Score Before 2016

In only a few months, we will be welcoming another year. For some of us, we are hesitant to go into the new year because it means a whole new set of financial responsibilities. One of them is managing your credit score.

Having a good credit score is essential for future purchases especially if it's a major investment such as a house, a car, or a high spending limit credit card. In order to be approved of such possessions, you must have a good credit score. And as the year 2015 near its end, there is still time to get your credit score in the green. Here are some tips on how to do just that.

1) Authorized User

Become an authorized user to someone whose credit card score is already up there in the best credit score category. It may be a family member or a friend as long as you attach your name to a credit card that has a long and clean history with no lates plus a high spending limit. Experts say that associating yourself with good credit history is one of the fastest way to increase credit score.

2) Payment History

One of the best ways to increase credit score is to have a good history yourself. Pay every bill on time and avoid erroneous transaction. We are emphasizing the importance of a clean payment history as it makes up an incredible 35% of your total credit score. By perfecting your payment history, you already have a better chance of improving your credit score.

3) Low Revolving Balance

To achieve a low revolving balance, keep your credit utilization low and make your payments frequent. Credit card utilization is one of the keys to protect your credit score. By keeping it as low as 10% to 30%, your credit score will be better. For credit payments, instead of paying in bulk, divide your payments to record more.

4) Low Credit Inquiries

Credit inquiries lower credit score so, if you can, limit it. Credit inquiries are events wherein you try to avail of new investments. For example, getting a new apartment or loaning a car or applying for mortgage. All of these prompt credit inquiries where authorities check your financial history. If you can, minimize it and only allow credit inquiries when absolutely necessary.

5) Small Purchases, Quick Payments

One of the quicker ways of boosting credit score is by making frequent but small purchases using a secure credit card. This way, you can pay off the credit quickly. This way, you are able to create a clean payment history.

Dramatically increasing credit score months away from a new year is possible. You just have to be extra-vigilant and disciplines. By following these simple strategies, you can be well on your way to your next big purchase in 2016 without any problems with regards to your credit score.