A good credit score is more than just a number—it’s the gateway to lower interest rates, better financial opportunities, and increased purchasing power. Many individuals focus on the basics of credit management: paying bills on time, reducing credit card balances, and avoiding unnecessary debt. While these are crucial, there are several underrated strategies that can significantly boost your credit score, sometimes faster than the standard methods.
In this article, we’ll explore three underrated credit score boosters that actually work, backed by financial experts, and explain how you can implement them to maximize your financial health.
1. Request a Credit Limit Increase
One of the simplest yet most overlooked ways to improve your credit score is by requesting a credit limit increase on your existing credit cards. While it may sound too straightforward, this strategy impacts a key component of your credit score: the credit utilization ratio.
How it Works
Lower Credit Utilization Ratio: Your credit utilization ratio is the amount of credit you use compared to your total available credit. If you have a credit card with a $2,000 limit and a $500 balance, your utilization is 25%. By requesting a higher limit—say $4,000—your utilization drops to 12.5%, signaling responsible credit management to lenders.
Minimal Credit Impact: If your issuer uses a soft inquiry to approve the limit increase, your credit score remains unaffected. Even if a hard inquiry occurs, the long-term benefits of increased credit limit often outweigh the temporary dip.
Enhanced Credit Mix: Increasing your credit limit can also improve your credit mix, another factor in your overall score. Lenders like to see that you can manage different types of credit responsibly.
Tips to Maximize Effectiveness
Request the increase only after maintaining timely payments for several months.
Avoid requesting multiple increases across different cards simultaneously.
Keep your credit card balances low after the increase to maintain the improved utilization ratio.
By leveraging this underrated strategy, many users report a 10–30 point increase in their credit scores within a few months.
2. Add a Credit-Builder Loan
Credit-builder loans are specifically designed to help individuals establish or improve their credit profile. Unlike traditional loans, these loans are structured to build positive payment history rather than provide immediate spending power.
How Credit-Builder Loans Work
Small Loan Amounts: The loan amount is typically modest and deposited into a secured savings account. You don’t receive the money upfront but repay it in monthly installments.
Regular, Reported Payments: Each payment is reported to all three major credit bureaus (Equifax, Experian, TransUnion). This establishes a strong pattern of responsible credit behavior.
Boosts Credit History: Credit scores reward consistent, on-time payments over time. Credit-builder loans add diversity to your credit mix, showing lenders you can manage installment loans and revolving credit.
Tips for Success
Choose a lender that reports to all three credit bureaus.
Make all payments on time to ensure maximum benefit.
Keep loan amounts reasonable relative to your income to avoid financial strain.
Credit-builder loans are particularly effective for first-time borrowers or individuals with limited credit history, offering a structured path to credit improvement.
3. Become an Authorized User
If you have a limited or poor credit history, becoming an authorized user on someone else’s credit card can be a fast-track method to improve your credit score. This strategy allows you to benefit from the primary cardholder’s positive credit behavior.
How It Helps
Leverage Their Good Credit History: As an authorized user, your credit report can reflect the account’s history, including timely payments and low credit utilization.
No Credit Checks Required: Typically, you won’t need to undergo a credit check to become an authorized user, making it accessible for people with poor credit.
Quick Impact: Adding a responsible primary cardholder can sometimes boost your credit score within a single billing cycle.
Things to Consider
Choose Carefully: Only become an authorized user on a card held by someone with excellent credit habits.
Monitor the Account: Even though you’re not responsible for payments, negative activity by the primary cardholder can affect your score.
Complement with Other Strategies: Use this method alongside other credit-building strategies for the best results.
Bonus Tips to Support Credit Growth
Beyond these three underrated boosters, you can accelerate credit improvement by:
Checking Credit Reports Regularly: Errors on your credit report can lower your score. Dispute inaccuracies immediately.
Diversifying Your Credit Mix: A healthy combination of revolving credit (cards) and installment loans strengthens your profile.
Avoiding Hard Inquiries: Frequent hard credit checks can temporarily lower your score. Apply selectively.
Setting Up Automatic Payments: Avoid missed payments by automating monthly bills.
By combining these approaches, you create a comprehensive credit strategy that balances both traditional and innovative methods.
Conclusion
Improving your credit score is not just about sticking to the basics. Implementing underrated strategies like requesting a credit limit increase, using credit-builder loans, and becoming an authorized user can make a substantial difference in your credit profile.
Remember, consistency is key. A good credit score takes time to build, but with smart strategies, regular monitoring, and disciplined financial habits, you can achieve higher creditworthiness, better loan offers, and greater financial freedom.
