5 Ways Millennials can Improve their Credit Scores in 2019

boost your credit score

A low credit score may hinder your financial goals. It is therefore crucial that you take remedial actions to build your credit score. With a good score, you will stand higher chances of obtaining credit, and even bargaining for better terms. Some of the things that contribute to a high credit score are a long credit history, low debt balances, on-time payment of debts, and a mix of various types of credits.

The following are some of the techniques that millennials can use to boost their credit scores in 2019:

  1.      Check your credit report and dispute errors

At times, your poor credit score could be a result of a banking error. The major credit bureaus give at least one free credit report every year. Take advantage of this; obtain it via email, or pay a small fee to check the report online. Although the credit report does not indicate your score, it contains all the credit products you have applied for, those that have been approved, canceled, and rejected. If you see an error on the report, you should send a letter or email to the credit bureau giving the details of the error and requesting a rectification. If the mistakes were quite significant, correcting them could help to significantly raise your score.

Also, you can liaise with professionals, for example, BoostCredit101, who you can find at to help you improve your credit score using various parameters.

  1.      Get a credit card if you do not have one

You may be surprised to know that having no credit is bad for your credit score, as you need some debt to build your credit. Payment history makes a good portion of your credit score—35%—but without credit, you cannot make any payments. You can build your credit history by getting a card with a low limit or even a secured one. After receiving the card, get used to making small purchases and paying for the balance on time. This way, you will show lenders that you are capable of using credit and paying it back.

  1.      Agree with creditors to eliminate late payments from your record

If any of your bills go to collections, your credit score will be hurt, but it is no reason to have bad credit forever. While settling your obligations, you can request that collection agencies do away with the records of late payment from your report. Alternatively, they can mark it as “resolved as agreed.”

  1.      Request to be added as an authorized user

You may have a relative who has a long credit history and an impressive credit. Having this person add you as an authorized user to their credit card may make that card appear in your report. You will benefit from a long credit history and on-time payments, both of which can remarkably build your score.

  1.      Lower your credit utilization ratio

Your outstanding debt, as determined by your credit utilization ratio, makes up 30% of your credit score. To calculate credit utilization, divide your total debt by the sum of credit available to you. Assuming you have a credit card with a $1000 limit and you have an amount owing on it adding up to $250, you have a credit utilisation of 25%. It is advisable and preferable to have a lower credit utilization, which you can achieve by paying off your debt using various techniques.

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