1. Pay off large debts first

Pay attention to large debts first. Repaying such debts will not only reduce the largest debt loopholes, but also save the most interest costs. A personal credit score is largely based on revolving debt, and the smaller the total amount of revolving debt, the higher the credit score. The general rule is to keep your credit balance within 30% of your credit limit, but if you want to significantly improve your credit score, it's better to use no more than 10% of your credit limit. This means that a credit card with a credit limit of $1,000 has a usable limit of no more than $100.

2. Repay your debt on time

There is no way to improve your credit score better than repaying your loan on time. Loan repayment records account for up to 35% of the credit score system. Even missing a repayment deadline will seriously affect personal credit. The easiest way to repay your loan on time is to sign an automatic repayment agreement and set a mobile phone reminder so that you have funds ready for repayment.

3. Apply for a credit card

Is it okay to have no credit? the answer is negative! If you have no credit record, which means there is no evidence to prove your credit status, then there is almost no difference between you and those with poor credit.

Credit card repayment record is currently the best indicator of personal credit. Only by applying for a credit card can you leave your own record in the credit agency and become a creditworthy person! Therefore, if you want to improve your personal credit, the first step is to apply for a credit card!

4. Apply for a few difficult cards

The so-called difficult cards refer to cards issued by banks with stricter review procedures, such as Bank of China, Agricultural Bank of China, and Industrial and Commercial Bank of China. , China Construction Bank, etc., especially the gold cards or platinum cards they offer. Only people with very good personal credit and a certain financial strength can apply! And precisely because of their strict review, once you have these cards, it is enough to explain your personal credit and financial situation.

If your credit status is good, it will be very convenient to apply for a loan or something. Only when your credit is used will you know how to worry. Then it is too late. To accumulate personal credit, a credit card can help you achieve it. There is no If you are a credit card holder and want to improve your personal credit, apply for one now.

5. Cancel unused credit cards in time

Many cardholders do not really need to apply for the card, but are attracted by the gifts they get when applying for the card, or to help friends complete tasks. When applying for a credit card, such a card can easily become a sleep card and be forgotten by us.

If you don’t use the sleep card, if you owe the annual fee, it will be overdue and in arrears. Therefore, the editor suggests that if you don’t use the card, cancel it as soon as possible! To avoid overdue payment, the gain outweighs the loss.

6. Repay on time and never make late repayments.

If you apply for a credit card and don’t use it, it will not be beneficial to your credit record! Repaying your loan in full and on time each month is a prerequisite for ensuring a good personal credit record.

Because every time you make a late payment, you not only have to bear the penalty of late payment fees, but also submit this information to the personal credit reporting system of the People's Bank of China, forming a bad record and leaving it on your credit record. Put this stain on me.

7. Once the repayment deadline is missed, promptly communicate with the card issuer

If the cardholder misses the credit card repayment deadline, he needs to contact the card issuer as soon as possible and negotiate amicably for the issuance of the card. The agency removes this objectionable information before submitting it to credit reference agencies. According to research by John Ulzheimer, a credit expert at the credit website CreditSesame, card issuers usually upload overdue payment information to credit reference agencies 30 days after the repayment due date, so there is still room for maneuver.

8. If conditions permit, it is best for each repayment amount to exceed the minimum repayment limit

Of course, this is easier said than done, but if you only pay by Minimum repayment limit to repay credit card debt is very beneficial to card issuers, after all, these institutions will receive interest income from it. For cardholders, repaying only based on the minimum limit each time is not worth the gain.

9. Pay attention to secured credit cards

Secured credit cards are an effective tool for rebuilding credit for card users with bad credit records. To put it simply, the effectiveness of a secured credit card is reflected here: before opening a credit account, the cardholder needs to pre-deposit a fund equivalent to a deposit to the card issuer, and the card issuer will approve an equal amount of credit. Thereafter, the cardholder's repayment record will be uploaded to credit reference agencies and reflect a positive credit history. Over time, it helps improve the cardholder's credit history.

10. Apply for a credit-generating loan

This is a credit-building strategy that Uzemeier appreciates. Go to your local bank or credit institution and apply for a credit-generating loan. Unlike typical credit, credit generation loans are not available directly; the money is frozen in an interest-bearing bank account. The lender makes monthly repayments up to the limit, and the funds are not actually available until repayments are made. At the same time, during the repayment process, the lender's good credit record will also be reflected in the credit report.

11. Obtain authorization for other people’s credit accounts

This method has two sides and needs to be used with caution. If the other party has good credit, the authorized person will improve its credit record accordingly. Once the other party has a bad record, the authorized person will also be dragged down.

12. Don’t immediately close old accounts that have been paid off

After paying off the last loan, cutting off the credit card and closing the account may seem like a good celebration method, but actually does nothing for credit accumulation. Credit history also plays a factor in your credit score, so keeping old accounts that are fully paid can show lenders you have a long-term good credit record.

13. Stop relying on credit cards

Last but not least, the last thing you should do to improve your credit is apply for a bunch more credit to cope with the current situation. There are financial problems. In doing so, not only will new credit inquiries affect your credit score, but you will also fall into a larger debt cycle.

Finally, rebuilding your credit is a marathon and won’t pay off in the short term. I believe that with perseverance and through the above methods, personal credit will be improved.

14. Carefully check the erroneous information in the credit report and fix it in time

Usually people do not understand the impact of erroneous information on personal credit scores. However, if any of these three credit reference agencies confuses the account of a lender with good credit with another person, and the latter has a record of credit fraud, the lender's good credit record will no longer exist. Therefore, you need to develop a good habit of downloading credit reports from these three credit reference agencies every year and correcting any incorrect information.