There are three things you can do to build your credit rating with the credit cards you already have.
Every six months do these two things
- Call and ask for a credit limit increase
By doing this you will build the amount of money you’ll have available to you to use and you will increase your rating because one factor in measuring your credit score is the amount of borrowing power you have.
2. Ask to have your interest rate lowered
When you get your interest rates lowered you end up paying less of a premium and your score goes up also because you are being trusted by the card company.
3. “Do This Every Month”
It’s crazy but it’s real! You are LATE if you pay your bill on the due date. That’s right if your bill is due on the 15th of every month and you pay it on the 15th you are LATE. That’s why your credit report shows you as being “30 days late”. If they get your payment on the due date it means that you waited for 30 days to send it to them and that transfers to you being 30 days late.
They have to get the payment by the 14th for you to be seen as paying on time. But if you really want to get ahead of your payments do this ….
Get in the habit of paying on time.
If your bill is due on the 15th of each month.
- Get the first payment to them by the 14th of the month.
- Pay the same amount again on the 16th of the same month.
- Every month thereafter pay your credit cards bills on the 16th of each month.
By doing this and sticking to this schedule of paying the day after your bill is due you will be ahead of your bills and you will be paying on time every month and your credit score will continue to go up.
The reason why this works well….
You have to first catch up to your payments. That’s why you are getting your first payment to them by the 14th. This will make you on time for the month you are starting your new payment schedule. Your next payment is due between the 16th of the current month and the 14th of the following month. The payment will be the same every time so that’s not a problem. To be on time and stay on time just get your payment to them before the 14th of the following month and every month thereafter. If you stick to this plan you will always on time and your score will keep getting better and better.
See also my other posting about Credit: