When you have a good credit score, you open the doors to many possibilities such as buying a house or a new car or getting a great credit card offer. Luckily, MoneyLion offers some powerful tools to help you when your score is need of a boost.
Here are some ways you can build up your credit in 6 months or less.
Get Your Bills Reported to Credit Bureaus
Did you know you can boost your credit with all types of payments? You can! Our partner LevelCredit will report your rent, utility, and other payments to the major credit bureaus — and give you access to your credit score and key credit insights — for just $6.95 per month. LevelCredit is an amazing way to power up your payments by using them to boost your credit score!
Use a Credit Builder Plus Loan
A great way to build up your credit score quickly is by signing up for a credit builder loan. This low-interest loan is a great way to add diversity to your credit portfolio and build your credit history.
MoneyLion offers a low-interest Credit Builder Plus Loan that gives you up to $1000 the same day. If you receive less than $1000 immediately, the remainder of your $1000 loan will be saved for you a credit reserve fund. The money in the fund will accrue interest, helping saving you money. Once you’ve paid off your loan, you’ll be able to access the rest of your loan money that’s been growing in the reserve fund. Cash and credit building — yes, please!
Pay Credit Cards and Loans On Time
MoneyLion reports your credit builder loan payments to all three credit bureaus: TransUnion, Equifax, and Experian. And 70% of members improve their credit by over 30 points in their first 60 days.
Timely payments make up 35% of your credit score. When the credit bureaus review your payment history, they’ll be looking for missed payments. So if you miss a payment, you could easily be dropping your credit score. Make sure you’re making payments on time to raise your score.
Set reminders on your phone or ask your lender about setting up payments on autopay. With MoneyLion, your Credit Builder Plus loan payments are automatically scheduled and deducted on their due date.
Keep Your Credit Utilization Low
Credit utilization, in mathematical terms, is how much you currently owe divided by your credit limit. So it basically analyzes how much of your available credit you are actually using. How much you are contributing to monthly payments factors in as well. This ratio makes up 30% of your overall credit score.
When you use 30% or less of your credit every month and pay more than the minimum balance, you are decreasing your credit utilization, which is a great thing for your credit score. Having a consistently low credit utilization will help raise your credit score in no time.
A Higher Credit Score in Lesser Time
Though you may not be able to leap from bad to exceptional credit in 6 months, you will definitely see an improvement in your score by taking the steps above — no matter what score you start at. There are so many factors that go into your credit score, but if you’re looking for a quicker road to success, join MoneyLion today and let us help you get there.