Did you know a bad credit score can be improved by building good credit? Yes, there are different ways to do this. Read on to know how to improve a bad credit score by building good credit.

Build credit by getting credit
If you want to know how to improve a bad credit score, then the simple way is by getting new credit to build credit. Although it is difficult to get new credit because of a bad credit score, there are lenders who give credit to borrowers with a low credit score. Once you get this new credit, manage it well and repay it on time to improve your credit score.

Get a secured credit card
A secured credit card is linked to your savings account. It may also be given on depositing an amount equal to or higher than the credit limit. Your credit is secured as the lender can use the deposit/savings account to get back their money. You can use this credit card and ensure you pay the bills on time. It is a good way to build credit.

Be an authorized user
A good way to build your credit is to piggyback on someone else’s credit. You can be an authorized user on a card belonging to your relative or friend. Ensure that the person has a good credit history. When you are a co-user of such a card, it helps build your credit. However, it is important to use this credit wisely.

Request for a higher credit limit
You can request your bank/card issuer to increase your credit limit. If they oblige you, then it increases your overall credit utilization, thus automatically allowing you to improve your credit score. However, you must not be tempted to spend more because you have a higher limit. This must be used only to build credit. Ensure that there is no hard check done by the bank as this can negatively affect your credit score.

Use joint accounts
Another way of improving a bad credit score is to have a joint account with someone who has good credit. This can be done by applying for a credit card jointly with someone else. Not everyone will agree to a joint account as they will be liable if you default. Mostly, parents have a joint account with their children to help enhance their credit score.

Get a retail store credit card
Retail stores offer credit cards to customers. This is relatively easier to get than cards issued by banks. You must note that these cards do not entail high credit limits and may not be accepted everywhere. The main reason to apply for this card is that you can get it easily. Moreover, it ensures you keep your credit spending less and helps you build good credit if you pay bills on time.

Now that you know how to improve a bad credit score, start implementing the ways outlined above and improve your credit score without any hassles.