How To Raise Your Credit Score From A 316: Tips and Tricks

Your credit score plays a pivotal role in your financial life. From renting an apartment to buying a house, your credit score is typically the deciding factor. However, if you find yourself with a 316 credit score, it can seem daunting and impossible to improve. But don’t worry, it’s not! In this blog post, we’ll cover steps you can take to raise your credit score from a 316 to something much higher.

1. Fix Any Mistakes

Before you start on the long journey of credit repair, be sure to pull your credit report from each of the three credit bureaus. Once you’ve taken a close look at your report remember to check for inaccuracies like incorrect late payments, closed accounts that are reported as open, and wrong balances. If you find errors, dispute them with the credit bureau and the creditor. You’ll find contact information for both on your credit report.

2. Begin Rebuilding Your Credit with a Secured Credit Card

If you have bad credit or no credit, a secured credit card could be an option for you. A secured credit card works by issuing you credit based on your deposit. Typically you’ll pay a refundable deposit of $200 to $500 with the credit card company, and in return, they’ll issue you a credit line of that amount. You can use the card like any other credit card, but please don’t spend more than 30% of the credit line or it could hurt your credit score.

3. Pay Your Bills on Time

Another factor that affects your credit score is payment history. It accounts for 35 percent of your credit score, which means it’s one of the most critical factors. Missed payments will show up on your credit report and stay there for seven years. To improve this area of your credit score, it’s essential to begin paying all your bills on time. Begin by setting reminders or paying online instead of through the mail.

4. Work with a Credit Repair Company

If you’re confused or overwhelmed by what you find on your credit report, consider working with a credit repair company. They can help you dispute errors on your report, negotiate with creditors for lower balances, and develop a plan to rebuild your credit overall.

A good way to find a credit repair company that won’t rip you off is to check the Consumer Finance Protection Bureau’s website. They have a good section on how to do credit repair yourself as well as how to find a reputable credit repair company, here.

5. Live Within Your Means

Finally, a credit score takes time to improve, so it’s essential to remember to practice good financial habits moving forward. Living within your means, creating a budget, and avoiding overspending can all help you to build good credit habits. When your credit score improves, you’ll find yourself with better interest rates and more opportunities to pursue your financial goals.

6. Keep An Eye On Your Credit

Credit scores are the metric that measures your risk as borrower.  You probably know this already, but it measures your borrowing risk.  Most advanced economies have them.  In  the US, credit scores range from 300 to 850, with higher values being better.  There are ways you can improve your credit, but they generally involve the recommendations in this article.  So, if you pay your bills on time, don’t borrow more money and keep your secured credit paid off, your score will improve.

All this said, you should check your credit every 6 months. More if you’re thinking about borrowing money.  Don’t pay to do this.  There are lots of free sources.  Some of these are:

• If you have a credit union or bank account, the bank may make it available to you part of the account
• Annualcreditreport.com is the government mandated free credit score source.
• Credit Karma will give you your score for free. They give it you as an incentive to join them in the hopes that you’ll buy one of the financial products they’re brokering.  You can find them here.

Summarizing It All

In conclusion, it’s never easy to face a 316 credit score, but it’s essential to remember that it doesn’t have to stay that way. With a bit of patience and willingness to work hard, you can raise your credit score. By taking small steps like addressing errors on your credit report or making your credit card payments on time, you can create a foundation to improve your credit score. So don’t give up- you can do this!

James Hendrickson

James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.