Raising Your Credit Score During Inflation

Three small numbers that have a major impact on your life: your credit score.

When you have a good credit rating, you can get better terms and lower interest rates on any credit cards and loans you may have.

But Wallethub analyst Jill Gonzalez says credit scores are increasingly having an impact on other aspects of life.

“Some jobs pull credit scores as part of a background check…when you’re renting, a lot of people pull your credit score,” Gonzalez explained.

So how do you maintain your high score?

Paying your bills on time is number one. If you are 30 days late or more, it can hurt your credit. Also try to use less than 30% of your overall available credit limit.

However, with inflation and rising rents, it can be difficult to maintain a high credit score.

Credit scores range from 300 to 850. If you fall below 650, Gonzalez suggests trying to rebuild your credit score.

One of the less risky and less expensive options are secured cards. When you get a secured card, you essentially pay a refundable security deposit which acts as your credit limit. You can check WalletHub’s card comparisons.

What about credit-boosting apps or websites?

Gonzalez says to do your research beforehand and be prepared to pay a fee upfront, but legitimate organizations can help in the long run. In some cases, you might be paying for your utility and rental payments to count towards your credit when in general they don’t count towards the score.

Depending on your situation, building or rebuilding credit can take six to 18 months. Gonzalez warns that if an option promises a quick fix, it’s probably too good to be true.

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