Race isn't supposed to be a determining factor in your credit rating – but somehow over 50% of Black people either have no credit or very poor credit! Here are some ways to increase your credit rating that you haven’t probably already heard a million times.
#1: Become an authorized user.
Ask a friend or family member with GOOD credit to add you as an “authorized user” on one of their credit cards! You can’t damage their credit, but they can dramatically improve yours. You can inherit good credit without doing anything!
#2: Debt consolidation.
Shrink that debt! If you have multiple credit cards, for example, consider “consolidating” all of those into just one payment a month. There are tons of consolidation programs out there. This will minimize your payment amount and make bill-paying days less stressful.
#3: Minimize “hard inquiries.”
“Hard” inquiries or “hard pulls” happen when you apply for a new line of credit. Sometimes they’re difficult to avoid when you’re desperate for a loan, and they can tank your score. Luckily, the impact is temporary – but only apply for new credit and loans when you really need to!
Credit impacts almost every facet of our financial lives. Following these tips can help increase your score and improve your “credit-worthiness!”