Did you know your three-digit score could help you save thousands of dollars over time? Your credit score plays a significant role in your financial life. Generally speaking, the higher your credit score is, the more it helps your financial situation. So, if your credit score isn’t in the best shape, how do you actually go about improving it? Keep reading to find out.

Dispute Errors In Your Credit Report

Your credit report is essentially a breakdown of your credit history, and it shapes your credit score. If you notice any inaccuracies in your credit report, make sure to immediately report it to the bureaus and get it corrected. Doing this will instantly improve your score slightly.

Pay Off Debts

Your credit utilization has an impact on your credit score. So, the more of your available credit you utilize, the further your credit score drops. To decrease utilization, you may want to consider paying off some of your debts, especially if you have some money saved up. That said, it’s best that you don’t liquidate your emergency fund to pay off your debts.

Request For An Increased Credit Limit

You can request your bank or credit union to increase your credit limit, which will, in turn, reduce your credit utilization. Your bank will likely oblige, especially if you’ve maintained a good relationship in the past and your income and spending power have increased as well.

Get Added As An Authorized User

You can also ask a family member or friend to add you as an authorized user to their credit card account. This will help you increase your credit score, provided the credit card payments are made on time.

Don’t Apply For New Credit

Each time you apply for a new loan or credit card, the creditor performs a hard inquiry into your credit history, which, in turn, negatively affects your credit score. So, if you’re looking to improve your score, avoid opening any new credit accounts, unless it is absolutely necessary.

Keep in mind that these tips will help you quickly improve your credit score. However, you’ll need to avoid making financial mistakes that could lead to your score taking a hit.