Getting turned down for a loan can be a blow for anyone, especially if you’re hoping to buy a house, purchase a car, or just do some home renovations. But now you want to apply for a loan, and the bank declined your application because your credit score is too low. 

Perhaps you went through a bit of a bad patch, missed some payments, or let your balances get too high. Now, to get that loan you want, you’ll have to take some serious steps to repair your credit. Fortunately, you can add points to your score quickly and easily by following a few steps.

Pay Your Bills on Time

Although paying your bills on time should go without saying, it bears repeating. Paying your credit card bills on time each month will do a lot to boost your credit score. Of course, if your score is particularly low, paying bills on time alone won’t repair credit. But prompt payments will be a significant first step.

Increase Your Limit

Part of what determines your eligibility for a loan is your debt-to-income ratio, which is the amount of debt you have compared to your available credit. It might sound counterintuitive, but a higher credit limit can actually repair credit by decreasing your credit utilization. Just remember that taking on more debt will increase your debt-to-income ratio, so you should only increase your limit if you know you won’t add more debt. 

Don’t Pay the Minimum Payment

If you only make the minimum payment on a card that has a large balance, you’re likely only paying for the interest you’ve been accruing. You should pay double the minimum amount, at least, to ensure a large portion of that payment goes toward the principal balance.

Become Someone’s Authorized User

Another way to increase your credit score is by becoming an authorized user on the account of someone who has a good credit history. A parent, a spouse, or other trusted friend or relative would all be great options. 

Monitor Your Credit

One thing that can damage your credit is identity theft if it goes unreported. So carefully monitor your credit cards each month and dispute any balances that look unfamiliar. Monitoring your account will also ensure all payments go through as intended, which can help you avoid late payment fees or unnecessary interest.

A good credit score is essential for securing any type of loan or housing. There are many ways you can work to repair your credit, but you have to be disciplined in doing so. Follow the steps outlined here, and you’ll be sure to boost your credit in no time.