The Fastest Ways to Improve Your Credit Score

In this week's 5-Point-5, we'll talk about the fastest ways to improve your credit score.

1st point: Check your credit card balances

Keep your account balances to less than 30% of your credit limits. This is one of the biggest factors affecting your credit score.

2nd point: Check for credit report errors

Check your credit report periodically for derogatory accounts, like collections. If you find an error, like a medical bill that insurance paid, dispute it with the credit bureaus.

3rd point: What if you have no credit? (No credit?)

The credit scoring models seem to respond best if you have a couple major credit card accounts. Most people, even those with past credit hiccups, can get a secured credit card. Secured means you deposit some savings to secure the account.

4th point: Add alternative payment history

Use a service like Experian Boost to get credit for monthly bills you already pay that don't usually appear on your credit report like rent, utilities, phone, streaming services, and insurance.

Last point: Use your credit

You need a history of using credit to have a credit score. Even if you don't like the idea of using a credit card, use it once a month for a small purchase and pay it in full. You don't need to pay credit card interest to have a good credit score.