Yes, you can genuinely improve your credit for free – without spending a penny. In fact, some of the best and most effective credit repair techniques are free.

Here are 10 proven ways to improve your credit score for free.

1) Ask your Bank for Higher Credit Card Limits

It costs nothing to ask your credit card issuer – your bank – to raise your credit limits. In fact, many banks increase your limits periodically without asking.

If your income has recently gone up, or if you’ve had a few years without major financial problems, then you could be due for a credit card limit increase.

Sometimes, all you need to do is ask. Contact your bank and ask for increased credit card limits. Even raising the limit on one card could lead to a significantly higher credit score.

Raising credit card limits gives you more credit and lower credit utilization. That means your credit score will rise.

2) Pay Credit Balances Strategically to Maintain Ratios Under 30%

Your credit score includes your credit utilization. If you’re using 90% of your credit card’s available balance, then you’ll have a lower credit score than someone using 20%.

People with the highest credit scores tend to use less than 7% of their credit card’s available balance.

Although 7% may not be realistic, you can pay off credit cards strategically. Aim to maintain ratios under 30% by paying off your balances in the right way.

Credit utilization is the second biggest factor in your credit score, so this can have a significant impact on your credit score – and it’s completely free to implement (aside from the cost of paying off your credit card).

3) Do Everything Possible to Avoid Late Payments

Late payments lower your credit score. Do everything possible to avoid making a late payment.

A single late payment can stay on your credit score for 7.5 years. The longer you wait to make a payment, the worse the impact will be.

If you have already missed a payment, then contact the creditor. Ask if you can make a payment as soon as possible in exchange for not reporting the late payment to the credit bureaus.

If you’ve only missed one or two payments, then this strategy is likely to work. If you’ve missed more payments, or if you’re late by 90 days or more, then creditors are less likely to cooperate. However, it may be worth a try – and it costs nothing to contact your creditor.

4) Dispute Errors in your Credit Report

Your credit score could be erroneously low. Sometimes, you have a low credit score because of errors on your report.

Someone could have stolen your identity and used it, for example. Or, a creditor may have missed a payment you genuinely sent on time.

You can get a copy of your credit report for free. Check your credit report for anything you don’t recognize. Contact the creditor to dispute any errors. Errors you could dispute include:

·        Payments marked as late that you actually filed on time

·        Entries and errors for someone else’s credit activity

·        Negative information that’s too old to be listed

·        Other mistakes and errors that could lower your credit score

This process is free, but it takes time: contact the credit bureau, and the credit bureau should investigate the error within 30 days. If the error was genuine, then the credit bureau could remove the score from your record.

5) Use a Secured Credit Card to Rebuild your Credit Score

Many people with a low credit score use a secured credit card to rebuild their credit.

A secured credit card is backed by a cash deposit. Your credit limit is equal to the cash deposit. In other words, it’s more of a debit card than a credit card.

Although it may seem counter-intuitive, a secured credit card could help someone with a low credit score rebuild their credit over several months. Keep balances low and pay them off on time to create an effective entry on your credit record – and raise your credit score.

6) Get New Credit

The more credit you have, the higher your credit score will be. Applying for new credit cards or getting a new line of credit from your bank will improve your credit score.

Although you may already have credit cards, other types of credit include:

·        Loans, including credit-builder loans

·        New credit cards

·        Lines of credit from your bank

It costs nothing to apply for these newlines of credit, and it could have a significant impact on your credit score. Although these options may not be available for people with low credit scores, they could work effectively for people with low to average credit scores.

Getting a mix of different types of credit is good for your credit score. If you only have credit cards, then this lack of diversity can lower your credit score. If you have a mix of loans and credit cards, it could raise your credit score.

7) Understand How Credit Scores Work

One of the best ways to improve your credit score for free is to understand how credit scores work. There’s plenty of free credit counseling information available online.

Credit score is made up of:

·        35% payment history

·        30% amounts owing

·        15% length of credit history

·        10% mix of credit

·        10% recent credit inquiries

8) Sign Up for Free Credit Monitoring

Free credit monitoring services help you track your credit score and avoid erroneous entries. You can spot suspicious or fraudulent activity before it impacts your credit score, giving you a higher chance of avoiding negative credit score impacts.

By keeping track of your credit history, you can dispute details ASAP. If you spot something on your credit score you don’t agree with – like a late payment that you paid on time – then you can dispute that claim with the credit bureau. If the creditor has no evidence for the entry, then it will be removed from your credit report.

9) Pay Twice a Month

If you’re in debt, pay your credit card bill twice per month instead of once. For many, it’s easier to break a lump sum into two smaller payments.

Paying twice a month also helps you save money on interest, maintain a lower credit utilization ratio, and pay off the balance faster.

Many credit counseling services recommend paying twice a month to improve your credit score.

10) Become an Authorized User

If someone with a good credit score lists you as an authorized user on their account, it can improve your credit score.

Being listed as an authorized user allows you to use that person’s credit, if needed. However, simply being listed(without ever using the credit) can help you establish a positive credit history.

There’s a flip side: if you’re an authorized user on someone’s account and they have bad credit or miss a payment, then it negatively affects your credit score.

Final Word: A 100 Point Increase is Possible with Free Credit Score Improvement Techniques

If you have a low credit score, it’s not unrealistic to expect a 100 point gain using the techniques above.

By implementing the proven techniques above today, you can improve your credit score for free. The lower your score, the more upside you have.

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