How to Boost Your Credit Score by Doing Nothing

When your credit score is not good enough you may feel like you must do something to improve it. You may apply for a new loan, file a dispute or even hire some person to help you make it better. Sometimes that really works. But you will be definitely astonished to hear that all you need to do is just nothing.

The following points will assure you that “the lazy person’s approach to perfect credit” really works.

1. Give Up Using Credit Cards

If some of your credit card balances are not budging, stop using this plastic. Go on making payments and the balances will go down. The more you pay, the faster it happens. If those balances have had a negative impact on your credit score, in some time you should notice a definite improvement as your debt usage ratio (that is the comparison of balances on your credit cards to credit limits) get better.

2. Avoid Applying for a New Loan

If you avoid taking out new credits, the new inquiries won’t affect your credit score in a negative way. So, even if a store clerk offers you to save 10% by opening a store credit card, just refuse it.

3. Credit Age Is Your Friend

Most of scoring models consider the age of the oldest credit accounts as well as the average age of all your accounts. Older accounts can help you improve your credit score as even negative information loses its weight over time.

4. Wait Until the Negative Information Goes

In a certain time period, all the bad stuff disappears from your credit reports. This means that it can’t have any impact on your credit score. Collection accounts, for instance, can’t be shown in your report more than 7 years plus 180 days from the original delinquency date, while charge-offs as well as late payments can be reported no longer than 7 years after they occurred. So, all you need to do is monitoring your credit reports, waiting for the day when those issues are just gone.

5. Let Accounts Be

If you have some credit cards you don’t use any more, just leave them be rather than closing them out. They won’t hurt your credit score and may even help it. Although, it may be better to close the account in case you are charged an annual fee or there is a co-signer on the account.

6. Hop on Somebody Else’s Account

You can improve your credit score by asking your parents, spouse or someone else to add you onto one of their credit accounts as an authorized user. If you are put on the account with low balances and an excellent payment history, you credit score will boost when that account appears on your reports.

7. Put Your Bills on Auto-Pay

Auto-pay is a great way to stop worrying about accidentally missed payments. Put it on autopilot and stay on track. But don’t forget to do a fast check-in every month to stay confident that your payments went through.