5 Credit Hacks You NEED to Know

In this day and age, every business is trying to incorporate new and improved features, tidbits, benefits to attract the ever-rising consumers of today. Just the same way, banks have incorporated special benefits along with the credit cards they offer. The credit cards offered by the banks have a lot of rewards attached to them but they come at the person who owns it through certain actions being implemented. In order to get all the rewards such as airline tickets, hotel tickets, even visiting differed countries one needs to attain a new credit card from the credit card they already own. The credit card a person already owns needs to have higher credit score for that person to own a new credit card that can give him or her the airline tickets, hotel tickets, free food at a restaurant etc., and more.

So, now one just needs to understand how to increase their credit score easily. There are many ways to increase the credit score of your existing credit card but top 5 are listed here because they have a higher probability of them working out for you.

Again, how does one increase the credit score? This can be done with the help of certain credit hacks one can incorporate into their financial lifestyle.

1. Pay on time or pay automatically through automated payments.

The easiest way to not earn any credit score is by not paying your bills or other kinds of payments on time. Sometimes one can be busy with many things, work hours may be long, or a certain emergency might arrive that might take us off our mental grid which would ultimately make us forget to pay our payments on time.

One can easily fix this by utilizing automated payment feature offered by banks. Through this feature, your mortgages can be paid instantly automatically the moment they arrive, your bills can be paid on time, your children’s fees can be paid on time—point is you won’t have to leave your bills on the wait list, they will be taken care of through auto payment method. In the end, you will get to increase your credit score as well.

2. Increase the limits on your credit.

This does not mean to increase your credit limit and buy more things with your credit card. This means that you have to increase the limit on your credit, for example, if the limit on your credit is $10,000, then you can only buy something through your credit card which costs less than $10,000—that equates to 100% credit utilization.

So, if you increase the credit limit to $30,000, then buy something that costs $10,000, then you will have a credit utilization of only 33% instead of 100%. Once the credit usage is around the 30% mark, the credit score can increase exponentially.

3. Utilize your credit card more.

This is very important. If one wants to increase their credit score, they have to use their cards more and more. But the entire trick is to keep the credit card utilization percentage around 20%-30%. People who have credit card usage less than 10% don’t have an increase in their credit score.

4. Check your credit report and fix it.

Sometimes you might be doing everything you can to increase your credit score but often times it is never your fault. Therefore, you can simply get a list of your credit record and view which items or places you used your credit card on and if it seems like there are things in there that shouldn’t be or should be there, then instantly report it to the credit bureau of your respective country. Once complaint is made, then your credit history will repair itself and your credit score will increase also.

5. Credit score of a credit card gets better with time.

If you have a credit card that you have been using for a few years, then don’t get a new one yet, increase your credit score on the old one and as years go by and you utilize your old credit card properly by making sure the utilization ratio remains in between the 20%-30% mark then your credit score can increase exponentially.

Therefore, these are the ways to increase your credit score and get the new credit card which can provide you with rewards such as plane tickets, hotel tickets, discounts and free meals at restaurants etc.

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