Prevent Credit Problems
If you're just starting out, you may want to avoid risky credit cards and loans in order to build up your credit score. Instead, try using secure payment methods like PayPal or Venmo with your friends or family members. This will help you keep a closer eye on your spending habits and set yourself up for financial success in the long run.
23. Ask Your Credit Card Company If You're Qualified for a Better Offer
If you want to score some rewards without going into debt, talk to your credit card company about applying for a more reputable offer. Most big financial institutions will allow you to switch cards if you're already an existing customer, so it's worth reaching out and asking what they can do for you. This is especially true if your credit scores have improved over time to the point where you don't need a secured card anymore.
24. Always Pay Your Bills on Time
Paying your bills late will hurt your credit score, so always do this as soon as possible for every type of bill that you have. You can even set up reminders in your calendar or automated payments in order to make sure that nothing falls through the cracks. Also, try to avoid charging more than you can pay off by the due date, so you don't rack up extra fees and interest.
25. Don't Open Too Many Credit Cards at Once
If you need to open a new credit card, you shouldn't apply for a bunch of them at the same time. This will make it look like you're desperate for money or over-extending yourself, both of which are bad for your credit score. Instead, focus on opening one card at a time so that you have time in between each account activation to pay them all off.
26. Have a Referral Program? Use It
If you have credit cards that offer a referral program, make sure to use it. This can help you to build up your credit score quickly if you are responsible about using the card, as well as encouraging your friends and family members to sign up for their own accounts. Just make sure that you don't go overboard – only encourage your close friends to sign up in order to preserve your relationships.
27. Don't Open Too Many Credit Cards at Once
If you need to open a new credit card, you shouldn't apply for a bunch of them at the same time. This will make it look like you're desperate for money or over-extending yourself, both of which are bad for your credit score. Instead, focus on opening one card at a time so that you have time in between each account activation to pay them all off.
28. Don't Close Old Credit Accounts
Using old credit cards and accounts is actually one of the quickest ways to build up your score, as long as you aren't over-extending yourself. By using all of your available credit, you're showing that you aren't desperate for money even if it means having debt, because you're comfortable using multiple options. This makes it look like you are financially secure. Feel free to use old credit cards that allow you to avoid annual fees, but don't close them unless they have an annual fee coming up.
29. Don't Close Credit Cards with Low Interest Rates
Closing old cards that you have less than perfect credit is actually a bad idea, even if they have a low interest rate. This will damage your relationship with these companies and may prevent you from getting better credit in the future. It also won't help to improve your credit score, either – apply for a new card instead that is based on your current circumstances to open up new lines of credit. 30. Never Close a Credit Card Account That You Use
If you aren't using an account, you shouldn't close it. This will give the appearance that you are financial unskilled, as well as show them that you don't care about building up your credit score – which isn't good for anyone's financial health. In addition to being an ethical issue, this will hurt your credit score and prevent you from getting better cards in the future. 31. Close Old Credit Cards with Low Balance Before Closing Out the Account
If you have a credit card account that has a low or zero balance and aren't using it, you shouldn't close it. This will damage your relationship with the company and may keep them from giving you new cards in the future. Instead, create a plan to pay it off over time to improve your credit score and demonstrate that you are responsible with your finances. 32. Don't Open Too Many Credit Cards at Once
If you need to open a new credit card, you shouldn't apply for a bunch of them at the same time. This will make it look like you're desperate for money or over-extending yourself, both of which are bad for your credit score. Instead, focus on opening one card at a time so that you have time in between each account activation to pay them all off. 33.
Conclusion
By following these steps, you can improve your credit score quickly and easily. While it isn't a guarantee that you will get accepted for every credit card out there, it is possible to improve your chances of getting approved. That being said, success often comes with little effort on your part – just make sure to follow the steps in order and remain disciplined, you'll be on your way to a better financial future in no time!
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Prevent Credit Problems