Your credit score is an important financial indicator that can affect many aspects of your life, from obtaining a mortgage to securing a loan. While there are common tips like paying bills on time and keeping low credit card balances to improve your credit score, there are also some unconventional strategies that could help give your score a boost. In this blog post, we will explore five unconventional strategies that you can use to improve your credit score.
1. Use a Credit Builder Loan
A credit builder loan is a type of loan designed to help individuals build or improve their credit score. With a credit builder loan, you essentially ‘borrow’ money that you have deposited into a savings account, which acts as collateral for the loan. As you make regular payments on the loan, the lender reports your timely payments to credit bureaus, helping to establish a positive payment history and boost your credit score.
2. Get Added as an Authorized User
If you have a close friend or family member with a good credit history, you may consider asking them to add you as an authorized user on one of their credit cards. Being added as an authorized user can help you benefit from the primary cardholder’s positive credit history, potentially boosting your credit score. Just make sure that the primary cardholder has a good payment history and low credit card balances to maximize the impact on your score.
3. Apply for a Secured Credit Card
A secured credit card requires a cash deposit that acts as collateral for the credit limit. By using a secured credit card responsibly and making timely payments, you can demonstrate to credit bureaus that you can manage credit responsibly, leading to an improvement in your credit score over time. Secured credit cards are often easier to qualify for than traditional credit cards, making them a valuable tool for building or rebuilding your credit.
4. Utilize Experian Boost
Experian Boost is a free service that allows you to add your phone and utility bill payments to your credit report. By including these payments in your credit history, you can potentially boost your credit score, especially if you have a limited credit history or if your credit score is marginal. Keep in mind that Experian Boost only works with Experian credit reports, so it may not impact your credit score with other credit bureaus.
5. Negotiate for Goodwill Deletions
If you have a history of late payments or other negative items on your credit report, you can try negotiating with your creditors for goodwill deletions. A goodwill deletion involves asking the creditor to remove negative items from your credit report as a gesture of goodwill, especially if you have a solid payment history otherwise. While not guaranteed, a goodwill deletion can potentially improve your credit score by removing negative items from your credit history.
Conclusion
Improving your credit score is crucial for your financial well-being, and using unconventional strategies can help you achieve this goal. By trying out these five unconventional strategies, you may be able to give your credit score a boost and open up more opportunities for financial success. Remember to monitor your credit report regularly, practice good credit habits, and be patient as improvements to your credit score may take time to materialize.