Tips To Improve Your Credit Score

If you merely purchase goods with cash, then surprising one day you may realize that you really don’t have a very high credit ratings as a result of this.

If you want lenders to build your overall financial profile in order to quality for loans, credit lines and increased purchasing power, then you need to take steps to improve your credit score starting today.

Improving your credit score can be done basically by following the steps listed below.

Open a bank account

Lenders and the credit reporting agencies will get an impression that you are not really financially trustworthy if you don’t have a bank account, particularly a checking account. These accounts aren’t actually visible on your credit report; however, bank account information is often requested on credit applications.

Plus, effectively managing your bank accounts will help you establish a good history with your bank and can further assist you in qualifying for credit-based products through your bank as well as other financial institutions.

Apply for a secured credit card

A secured card requires you to make a security deposit to be used as collateral. They will usually issue you a starter credit line that matches the same amount as your security deposit. So if you put down a $500 security deposit, then you can expect at least a $500 starter line of credit.

The credit card issuer will then monitor your account activity and determine your monetary responsibility based on the amount in purchases you make each month and if you pay your credit card bill on time.

Always always always pay on time as this will build your credit. Never default. If you do, the credit card company will keep your security deposit and your credit score and financial record will plummet deeper than it was before.

So DO NOT mess up a chance to prove your credit worthiness. The credit system is just simply too unforgiving and if you mess up it could take you years to rebound. So don’t default; this is no joke.

We live in a credit-based society and this is the way our modern system will judge your financial worth. That’s just the way it is so you must play the system to your advantage.

One important thing make absolute sure of is before accepting any credit card is that the credit card issuer will report your positive payments to at least one (or all) of the major credit bureaus: Experian, Equifax, TransUnion. Otherwise, they’re not helping you to build your credit score and you don’t have time for that.

Once you find a good secured credit card that has proven to you in writing that your positive payments will in fact be reported to at least one of the major credit bureaus, then as I’ve stated before, DON”T MESS UP! Be sure to pay every credit card bill on time and always remember that credit is not free money, just look at it as a 30-day revolving loan that you’ll have access to on demand. This is a great security blanket for you when understand how to use and manage your credit wisely.

Eventually as you build up your credit score, you will find that you’ll be presented with opportunities to graduate from secured cards to unsecured cards. At this point your discipline has really paid off and you’ll be offered even better credit card perks such as higher credit limits, lower interest rates and some cards will even offer youcash back!

Become an Authorized User

You could be listed on someone else’s credit account such as a close friend’s or family member’s account as an authorized user. This will enable you to increase your credit score in the same way that that you would if you were the primary card holder. Same routine, just use your credit account responsibly and do not default.

If you go this route, only become an authorized user on an account that is in good standing. If they’re credit is screwed up, don’t associate yourself with it. Only put yourself in situations that can pull you up, not down. This is how you can rise up fast as an authorized user on someone else’s credit account.

Just be sure that you appreciate and respect the fact that someone trusted you enough to allow you to be an authorized user on their account. Be sure to show your appreciation by using the account wisely – else you will not only damage your finances even more, but you will risk damaging theirs too, because they are the primary cardholder and ultimately responsible if things go south.

Apply for a personal loan

A small personal loan can help you to build your credit worthiness and increase your credit score. You will no doubt be viewed as a trustworthy and financially stable individual when you are eligible to get a personal loan through banks and credit unions.

Once you get the loan, be sure to make all of your payments promptly and this will help to boost your credit score. And just like with when applying for a credit card, before you accept any loan make absolute sure that they will report your positive payments to the major credit bureaus.

Get a co-signer if you must

If you’re just not at the point where you can qualify for a loan on your own, then getting a co-signer would really come in handy. You will be able to benefit from the favorable credit reputation of your co-signer which will help you to qualify for the loan and give you a chance to improve your credit score.

With this arrangement, you must take extra care to always pay on time, because someone believed in you enough to co-sign the loan for you. And if you mess up this opportunity, you will put them in a bad financial situation and possibly even ruin your relationship with them. So don’t get a loan that’s too large for you to handle – and always make sure that you make on-time payments.

The above advice will hopefully help you to take steps toward building (or rebuilding) your credit score. With strong desire and discipline, you can definitely do this and put yourself in a much better financial situation.

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Hetah McCarthy

This is awesome and really helpful πŸ™‚ I never really understood the concept of having a high credit score or how to get there, but now I have a foundation when applying for my first card. Now I know to make sure the positive payments get reported BEFORE signing up for anything.

Eusebio Sandoval

You learn something new every day! Until now, I never knew to make sure my credit card issuer reports my positive payments to the major credit bureaus. After all, my goal is to build up my credit score and eventually get an unsecured card. Thanks!

Roger Coppetti

This is an excepcional way to improve the way we use our credit card. Also helps in the demystifying most of the negative points of such things. Great job.

Keith Brown

I did not know that being an authorised user could affect my credit score. I have no personal credit cards, only authorised user cards so that’s a plus. Thanks DebtGuru!!

Margaret Kungu

This is a great insight on improving my credit worthiness and I am glad I landed on it. The article is so straight forward and now I am equipped with all I need as well as some discipline too as there are repercussions if I default ;-]

Kim Joseph

Didn’t know about the credit bureaus until now. I’ll be asking my credit card issuer about it. This article is helpful. I have been using my credit card for the past two years now and I always pay in advance.


Thanks for the helpful tips. I like the idea of secured credit cards being adopted today. Seems like a win-win situation both for the borrowers and banks.


This helped me open another bank account. I’m not really good with money and my mother is actually in so much credit debt haha. Thanks for pointing out additional options.


Good read, especially for fresh graduates who are just about to step into the working life. However, personal loans are not really a good idea as the interest rates are super high, unless you are confident that you can pay it back in time!

Ey Adecer

I do like the fact that it leads everyone to very simple steps and given that people are too busy to study these techniques alone. It is also great that people will have a support from your solution not only to improve credit scores but to build their reputation. I just wonder how you guys can support people who took a secured credit card before and ended up to being totally incapable to pay on time, to pay the whole amount or simply to pay.


This is a perfect guide for anyone who is thinking of taking out a loan or to boost your credit score. The credit industry is rising, so thank you for your advice on playing the system to your advantage.

Many people spend large amounts of money on credit cards that they simply can not pay back. Therefore, I particularly liked your comments on the outcome of missed payments and the fact that you stressed about messing up any chance to prove your credit worthiness.

Great advice, thank you.


This is such an informative article. Not everyone understands the value of credit card per se, especially when it comes to getting a better standing in banks. Thank you for letting me know that getting personal loan also helps, of course with paying on time comes with good standing, therefore I may be able to get a higher credit eventually.


I know a number of people who’ve been burned because of uncontrollable spending using their credit cards. I think sometimes it’s just too easy to forget how easily interests rates and fees can pile up – especially if you don’t pay on time. Then when it gets really bad, credit scores are the least of your worries, and your main focus is getting out of debt. That information about the secured credit card types is interesting, though – like you’re saving first before you spend. A good way to introduce kids and adolescents to the word of credit and credit scores.

Madeleine Thien

I have a credit card, but thanks to many other articles that I have read about the ‘negative’ aspects of using one, I tend to use my debit card instead and cash. After reading the tips above, I am now more confident and most likely will be using my card very soon when I shop online πŸ™‚ I didnt know that there cards can be ‘secured’, so to speak. Opting for a co-signer and a personal loan is also a good option to increase one’s credit score, I definitely agree. It is true that banks do make money by offering services such as these personal loans, but when one is in need of funds when starting up a business or a start-up, loans such as these are a God send! My husband and I also made full use of a loan when we were getting married and purchasing our first house together. Being aware of the interest rate and being timely in terms of payment is definitely important, as pointed out above.


Great article, this makes me know more about the credit score and that it is actually important. I only knew that we have to pay back every time and not delay it since there will be charges. Besides that, getting a co-signer is a good idea if we know each other well enough since we would not want to damage both our reputations if something goes wrong.


Oh wow! This is amazing information. The small personal loan tip could be very useful to a lot of people.

amrin shaikh

Yes, paying credit card bill on time can increase our credit score. I have experienced the positive aspect of paying credit card bills on time. My bank offered me a privilege by extending my credit card limit. So, you can take benefits from your bank by building your credit score.

Cj Bautista

I personally think that becoming an authorized user, being able to apply for a personal loan and being able to get a co-signer improves one’s Credit Score because becoming an authorized user means that you are trustworthy enough to be a co-user of someone else’s credit account and it is a big risk to be given to someone, may he or she be a relative or not. Being able to apply for a personal loan and being a good payor of that loan is also a good way to improve one’s credit score because being a responsible loaner means that you are trustworthy enough to be given a certain amount of money and also builds your reputation to be worth trusted again. Being able to get a co-signer helps improve your credit score because nowadays, it is not easy to be a guarantor for someone else and pay for his or her debt if he fails to do so. Only a person whom you can trust the most is trustworthy enough for that certain signature. I believe that if you’re able to gather and perform those three, your credit score will improve, or it will help improve your credit score in no time.


Actually apply for a loan is a 2-side coin. If you will not make payment in time then you also will not gain any scores in your credit history.

Sheena H

Parents with good credit scores can help their daughters or sons improve their credit scores by listing them as authorized users, even without letting them use the card. Also, when you have a personal loan or any type of loan, it is a great idea to set them on automatic payments to avoid any late payments.

Jose Castillo

I definitely think the best options here are the first two. Opening a Bank Account will surely get you a better credit score if you manage that account in a right way and the same happens with the secured credit card, pay in time, be responsible and you’ll have what the credit you’re looking for. Is about the bank trusting you so you’ll have to show them that you are a trustworthy person.

Raja Izan

It will also always help to check on your current credit “worthiness” with the three major credit bureaus (Experian, Equifax, TransUnion). That way, you’ll know where you stand and what you need to fix/tweak.


I must say this article provides great tips in improving our credit score. Credit score plays an important part in our life nowadays and almost every subscription requires a good credit score for you to be qualified. It’s all about being responsible enough in making payments.

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