Apply to increase your credit limit on your credit card. This has to do with something known as the credit utilization ratio. This ratio is how much credit cardholders currently use versus how much is available. Experts suggest cardholders use less than 30% of the limit on any credit card. By raising the credit limit, it is easier to reach that 30% or lower mark. It is a good idea to ask the credit card company beforehand what kind of credit history inquiry they will do when they look at an application. A hard inquiry may affect a cardholder’s credit score, but a soft inquiry will not.
Use a secured credit card. This is a credit card secured with a cash deposit upfront that is usually equal to the credit limit. This type of card is available to many people and uses less strict requirements. It needs on-time payments like a regular credit card. Because of this, it can help create a record that shows the cardholder is able to make timely payments and keep balances low.
Review your credit report for any errors. Accidents can happen. People may have missing payments recorded or duplicate accounts listed on their credit report. If they find information that may not be accurate, they may be able to request to have it removed.
Pay down any revolving credit balances. Credit cards that do not have fixed amount payments can also be considered revolving credit. They can stay open as long as the card holder continues to pay off all the varying balances each payment period.
For more information on this topic, please reach out to me.
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