I am the laziest person that I know. Seriously, if given a choice between eating lunch and taking a nap, I’m going to get some rest. I play it off that I work two jobs, but it is really because I am just plain lazy. To a gentleman who prefers to procrastinate and enjoys a leisurely pace, improving one’s credit score can be a daunting task. Luckily, there are several ways to improve your credit while doing my favorite thing…nothing at all.
Leave things as they are
For this all you need to do is let your current credit card accounts get older. According to the Fair Issac Corporation (FICO), the length of your credit history accounts for fifteen percent of your score. So, all you need to do is keep making your payments on time. You will find a pie chart at this link that fully explains how FICO builds a standard credit score.
Stop shopping for credit
Each time you apply for a new line of credit, your credit report is pulled. These hard inquiries reduce your credit score by about 5 points each. If you are shopping for the best rates and terms by applying for a loan through multiple lenders, credit reporting agencies group the multiple applications into one inquiry, so you will only lose 5 points as long as all of the applications are in a two-three week period. The drop in your credit score will disappear after 60 days, but the hard inquiry will show on your credit report for two years.
Actually getting a loan will lower your credit score in two ways. New credit accounts for ten percent of your credit score and the amounts you owe account for 30 percent of your credit score.
Take a piggyback ride
You can improve your credit score by piggybacking on someone else’s credit history. There are two ways to do this. With credit cards, you can be added as an authorized user on an account of someone with a good credit history. Secondly, you can find someone who is willing to cosign a loan for you.
Let your bank pay the bills
Your payment history accounts for thirty-five percent of your credit score, so making all of those pesky payments on time is very important. At the same time nothing is more aggravating than having to write checks or authorize electronic fund transfers every month. So, why do it? Sign up for auto-pay and let your bank take care of it all for you. All you have to worry about is having enough money in your account when the payments hit.
Many people think that improving their credit is something that they have to work at every day. Fortunately, it is a lazy man’s game and you can take a nice leisurely approach and still move toward excellent credit.