Simple and Effective Ways of Boosting Your Credit Score in 2021

A person with poor credit might not easily get an apartment, mortgage, or a credit card. You might also have to pay high interest rates, making it costly to obtain credit lines and loans. You can start working on your credit score as you set financial resolutions for this New Year. These are simple ways you can use to boost your credit score this year.

Better Payment History

Your payment history indicates your ability to pay bills on time. Making timely payments is a way of communicating to your lenders that you are trustworthy and responsible. Therefore, you can improve your credit score this year by improving your payment history. You can start by setting a budget and sticking to it so that you can set aside enough money for your payments. You can also achieve this by automating your bills to make late payments due to human error. Finally, set reminders for your bills and their due dates.

Dispute Credit Report Errors

Your right to an accurate credit report allows you to report or dispute errors on your credit report by writing to the credit bureau. The bureau then investigates the dispute within a specific period. Credit report errors often originate from identity theft, data entry snafus by a creditor, or interchanging birthdays, SSN, or addresses. Dispute such errors as soon as possible so that you can start increasing your credit score.

Borrow Small Loans

Another effective way to boost your credit is to borrow a small loan and make timely repayments. The tip here is to ensure that the loan amount is small and repay as per the terms to boost the credit score. Consider small personal loans in Tucson and other cities that can help you build your credit score. Additionally, it can add positive information to the credit report and boost your credit mix.

Make Your Rental Payments Count

You can boost your credit score in 2021 by adding your rent payments to your credit report. If you make your rent payments on time, you can add the report’s payments to improve the amount of positive history that goes to credit bureaus. You can sign up to an app or bring your property manager or landlord on board can limit fees. Confirm with your landlord if they have opted for rent reporting services.

Regular Credit Report Checks

You can get a summary of your credit activity and inform you of any red flags through your credit report. The report contains information like your current balances, open credit accounts, such as personal loans, credit cards, and mortgages, and the period the accounts have been open. If you notice an open account that someone opened in your name, and it’s hurting your credit, you can reach out to wipe away the negative activity.

Try Out Experian Boost

You can raise your credit score this year by paying your bills on time. You can use a feature that allows you to add your internet, cable, streaming payments, on-time phone, and utility payments to your credit report. Connect the bank account to pay these bills and add it to your Experian credit file to calculate your credit score.

These are a few of the simple ways you can increase your credit score this year. Patience and persistence are essential when improving your credit score. Since you didn’t damage your credit overnight, you shouldn’t expect to improve within a week or month.



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