If you have fair credit, you might find that you are able to get approved for certain credit cards and loans without too much of a problem. However, you might pay higher interest rates on any lines of credit that you take out, and you might also have a hard time getting approved for higher-end credit cards or for a mortgage. If this is the case, you could be wondering how you can boost your credit score from fair to good. These are a few tips that can help you do so.
Pay Down Your Debts
First of all, you should know that the amount of debt that you have can have an impact on your credit score. The guideline is that you should not use more than 30 percent of your credit limit. However, using even less than this amount can help you raise your score even more. Basically, this shows lenders that you know how to use your credit responsibly. Plus, it can benefit you as well, since it can prevent you from getting in over your head and can lower the amount that you have to pay in interest.
Make Sure You Pay Your Bills on Time
If you have a fair credit score and not bad credit, then you probably pay the majority of your bills on time. However, you might occasionally pay one or two of your bills late. If this is the case, it is important to make an effort to pay each of your bills by its due date every month. Once you can establish a better payment history, you might find that your credit score will rise even more.
Take Out Another Loan or Line of Credit
Some people who have fair credit have fair credit because they don’t have a lot of open accounts. You might find that you can establish a better credit score if you take out a loan or credit card and begin using it responsibly. This can add something to your credit profile and will allow you to establish a solid payment history. Over a few months’ time, this could help you get the credit score that you are hoping for. Just make sure that you are responsible with your new credit card or loan so that you do not make your credit score worse.
As you can see, if you would like to improve your credit score from fair to good, there are a few steps that you can take. If you follow these tips, you may finally be able to have the good credit score that you have always hoped for. Then, you might find it easier to get approved for loans and credit cards, and you should be able to qualify for lower interest rates as well.