Finance Website

Category: Loans

  • How to Improve Your Credit Score: 7 ways that you can use

    How to Improve Your Credit Score: 7 ways that you can use

    There are 7 major ways you improve can your credit score, including making on-time payments, paying down balances, avoiding unnecessary debt and more. But depending on your unique situation, it can be difficult to know where to start.

    Whether you’re building credit from scratch or rebuilding after some credit missteps, understanding the factors that go into your credit score can help you determine which steps to take. If you’re looking to improve your credit score fast, focusing on the right factors can make a noticeable difference in a short time. With that in mind, here are seven ways to improve your credit score, how much impact they could have and how long it can take to start seeing results.

    Instantly raise your credit scoresø

    Add any bank accounts you use to pay your bills. Your information remains private.Graphic manage bills select account

    We’ll detect bills with on-time payments, and you can add them to your Experian credit file.Graphic manage bills.

    You’ll find out right away if your credit scores increased and by how many points.Graphic credit score boost with bills.

    øResults will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®. Learn more.

    1. Make On-Time Payments

    Credit impact: Your debt payment history accounts for 35% of your FICO® ScoreΘ and is the most important credit scoring factor. Payment history includes on-time, late and missed payments, all of which are reported to one or more of the national consumer credit bureaus (Experian, TransUnion and Equifax). Always making payments on time can go the furthest to helping you improve credit.

    Actions you can take: If you’re having trouble making payments on time, set up autopay for at least the minimum due and create calendar reminders and alerts through your online account. You can also register for Experian Boost®ø and get credit for payments that aren’t traditionally reported to the credit bureaus, including eligible rent, utilities, cellphone, insurance and some streaming subscriptions. Adding these payments could instantly increase your credit scores powered by Experian data.

    How long it takes: You may see a steady rise in your score as you pay your bills on time. If you make a payment over 30 days late, it will remain on your credit report for seven years and hurt your scores, but that negative impact will diminish over time as you get caught up and pay on time going forward.

    Learn more:How to Improve Your Payment History

    2. Lower Your Credit Card Balances

    Credit impact: How much you owe accounts for 30% of your FICO® Score, and your credit utilization rate—the percentage of available credit you’re using on revolving credit accounts such as credit cards—is a major element. While some experts recommend keeping your utilization rate below 30%, there’s no hard-and-fast rule. Aim to keep it as low as possible.

    Actions you can take: If you have one or more high credit card balances, make paying them off a priority. Consider different ways to pay down your credit card debt, including:

    If you regularly pay your credit card bill in full but still have a high utilization rate due to low credit limits, consider paying your bill shortly before your monthly statement date or making multiple payments to keep your balance low throughout the month.

    How long it takes: Credit card issuers typically report balance and payment information to the credit bureaus once a month. So, as you pay down your credit card debt, you may start to see the results of your efforts within a few months.

    Learn more:How to Pay Off Credit Card Debt

    3. Don’t Close Your Oldest Account

    Credit impact: When you close a credit card account, you immediately lose that card’s available credit, which could increase your credit utilization rate and hurt your scores. Additionally, length of credit history makes up 15% of your FICO® Score and is heavily influenced by the age of your oldest and newest accounts and the average age of all of your accounts. While loan accounts are typically closed once you pay off the debt, you can keep credit cards open indefinitely.

    Closing a credit card can hurt your credit score, especially if it’s one of your only revolving credit accounts. That’s because you lose the available credit line, which is an important factor in your credit utilization ratio. If you close the card in good standing (no late payments), that card’s payment history will stay on your credit report for 10 years; however, you’ll lose the available credit immediately.

    Actions you can take: Even if you no longer need your oldest credit card, consider using it every few months or putting a small recurring bill on the card to keep it active. If the card no longer serves your needs or charges an annual fee, check with your card issuer to see if you can downgrade the card to one that’s a better fit. This may allow you to keep the credit history but switch to a card that works better for you.

    How long it takes: If your oldest credit card is also one of your only credit cards and has a high credit limit, it could impact your scores quickly—especially if you carry high balances on your other cards. Also, while it will take a while for the card to fall off your credit report, you’re still eventually losing a card that shows a long credit history, which could end up hurting your credit.

    Learn more:How Does Length of Credit History Affect Your Credit?

    4. Diversify the Types of Credit You Have

    Credit impact: Credit mix accounts for 10% of your FICO® Score and involves managing different types of credit. For example, someone with two credit cards, an auto loan and a mortgage loan will have a stronger credit mix than someone with just one credit card.

    Note that your credit mix generally won’t be a major factor in determining your eligibility for a loan or credit card, but it can help take a good credit score to the next level.

    Actions you can take: Your credit mix will likely improve naturally over time as you apply for different types of credit to meet your financial needs. If you’re just starting to establish your credit history, it can help to apply for a starter credit card and a credit-builder loan.

    Once you get going, however, try to avoid taking on more debt than is necessary just for the sake of building credit.

    How long it takes: Because your credit mix has a smaller influence on your credit score, there’s no need to rush. Diversifying your credit mix can take several years as you apply for new credit accounts when you need them.

    Learn more:What Is Credit Mix and How Can It Help Your Credit Score?

    5. Limit New Credit Applications

    Credit impact: Virtually every time you apply for credit, the lender will run a hard inquiry on one or more of your credit reports. These inquiries and how long it’s been since you’ve opened a new account make up 10% of your FICO® Score.

    Each hard inquiry will typically knock fewer than five points off your credit score, but multiple inquiries in a short period of time, especially when applying for credit cards, could have a compounding negative effect.

    Actions you can take: Only apply for credit when you need it to avoid too many hard inquiries. Before you apply for a loan or credit card, check to see if the lender offers preapproval, which can give you an idea of your eligibility and potential terms with a soft credit check, which won’t impact your credit score.

    If you’re shopping around for a mortgage loan, auto loan or student loan, newer FICO® Score versions will combine multiple inquiries into one for scoring purposes as long as you complete the rate-shopping process within a short timeframe, often between 14 and 45 days depending on the version used.

    How long it takes: Hard inquiries remain on your credit reports for up to two years, but they only impact your FICO® Score for up to one year.

    Learn more:Hard Inquiry vs. Soft Inquiry: What’s the Difference?

    6. Dispute Inaccurate Information on Your Credit Report

    Credit impact: Inaccurate credit report information can have a significant negative impact on your credit score, especially if it’s a serious issue like a late payment or a high credit card balance. If you’re a victim of identity theft, you may have multiple derogatory marks on your credit reports in the form of fraudulent accounts.

    Actions you can take: If you have inaccurate or fraudulent information on your credit reports, you have the right to dispute it with the credit reporting agencies. Start by getting your free Experian credit report, and request your free weekly Equifax and TransUnion credit reports through AnnualCreditReport.com.

    Review your reports for any information you don’t recognize. If you find inaccurate details, follow the dispute process with Experian and the other credit bureaus to initiate an investigation.

    How long it takes: Credit disputes are typically resolved within 30 days. If the credit bureau determines that your dispute is valid, it will correct or remove the negative information.

    Learn more:How to Dispute Credit Report Information

    7. Become an Authorized User

    Credit impact: If you’re new to credit or rebuilding your credit score, having a financially responsible loved one add you as an authorized user on their credit card can have an immediate positive impact on your credit score.

    That said, the impact can vary depending on how the credit card is managed and the overall makeup of your credit profile.

    Actions you can take: Ask a parent or other loved one to add you as an authorized user on their account. Before you do, however, make sure that the account has a positive payment history and a relatively low credit utilization rate.

    How long it takes: Once you’re added as an authorized user, the card issuer will typically report the full history of the account to the credit bureaus within a month or two.

    Learn more:Will Being an Authorized User Help My Credit?

    Frequently Asked Questions

    Check Your Credit Score for Free

    Knowing where you stand and watching your progress can be important. With Experian, you can check your FICO® Score for free. Your account gives you a breakdown of which factors are impacting your score the most, so you can take a focused approach to improving your score. Your credit score will also automatically be tracked and updated each month.

    Instantly raise your FICO® Score for free

    Use Experian Boost® to get credit for the bills you already pay like utilities, mobile phone, video streaming services and now rent.

    No credit card required

  • How to Increase Your M-Pesa Fuliza Limit: 5 proven methods to increase your limit

    How to Increase Your M-Pesa Fuliza Limit: 5 proven methods to increase your limit

    Your Fuliza limit is not fixed and can fluctuate based on your financial behavior and M-Pesa usage patterns. Safaricom reviews these limits every 90 days, with the scoring algorithm considering multiple factors to determine your creditworthiness. New users typically start with limits as low as KES 100-500, while established users with good credit profiles can access up to the maximum limit.

    Key Requirements for Limit Increases

    Minimum Eligibility Criteria

    Before attempting to increase your limit, ensure you meet these basic requirements:

    • Active M-Pesa user for at least 6 months – This is a fundamental requirement as customers with less than six months on the network will have a zero limit
    • Registered using Kenyan national ID, Kenyan passport, or Military ID – Foreign passport registrations are not eligible
    • Good Credit Reference Bureau (CRB) status – Check your status by dialing *433#

    Proven Strategies to Increase Your Fuliza Limit

    1. Maintain Excellent Repayment History

    Timely repayment is the most critical factor in increasing your Fuliza limit. Safaricom’s algorithm heavily weighs your repayment behavior when determining credit limits:

    • Repay borrowed amounts as quickly as possible – ideally before the next day at midnight to avoid daily maintenance fees
    • Never exceed the 30-day repayment period, as this will result in your limit being suspended until full repayment
    • Set up payment reminders to ensure you never miss repayment deadlines

    2. Increase M-Pesa Transaction Volume

    Frequent and consistent M-Pesa usage significantly impacts your limit. Safaricom uses your M-Pesa usage volume as approximately 25% of the scoring signal when reviewing limits:

    • Perform at least 5-10 transactions per week using various M-Pesa services
    • Use M-Pesa for diverse activities: sending money, paying bills, buying airtime, and Lipa na M-Pesa transactions
    • Gradually increase your transaction amounts over time to demonstrate growing income capacity

    3. Build a Strong Credit Profile

    Your overall creditworthiness extends beyond just M-Pesa usage:

    • Pay all loans on time – including bank loans, mobile loans, and credit cards
    • Maintain a good debt-to-income ratio and avoid taking on excessive debt
    • Regularly check your credit report and resolve any errors immediately
    • Space out loan applications rather than applying for multiple loans simultaneously

    4. Optimize Safaricom Service Usage

    Consistent use of Safaricom services demonstrates customer loyalty:

    • Maintain regular airtime and data purchases
    • Use Safaricom services for voice calls and messaging
    • Consider saving money in M-Shwari to show good financial habits
    • Engage with multiple Safaricom financial products responsibly

    5. Strategic Account Management

    Monitor Your Account Regularly

    • Check your Fuliza limit by dialing *234# and selecting the Fuliza option
    • Review your mini-statement regularly to track usage patterns
    • Monitor your outstanding balance to ensure timely repayments

    Maintain Consistent Deposits

    • Regular M-Pesa deposits signal stable income flow
    • Gradually increase deposit amounts over time
    • Keep funds flowing through your M-Pesa account rather than letting it remain dormant

    The Opt-Out/Opt-In Technique

    This method involves temporarily opting out of Fuliza and then re-registering, which may trigger a limit reevaluation. However, this technique is risky and may result in a lower limit than your previous one:

    Steps:

    1. Dial *234# and select “Fuliza M-PESA”
    2. Choose “Opt Out” (usually option 7, may require pressing 98 for more options)
    3. Confirm your choice
    4. Wait 20 minutes before proceeding
    5. Repeat the process and select “Opt-In”

    Important Warning: This method can be hit or miss and may result in a decreased limit.

    What NOT to Do

    Avoid These Limit-Damaging Behaviors

    • Never default on any loans or exceed the 30-day repayment period
    • Don’t max out your limit frequently – use smaller amounts and repay quickly
    • Avoid applying for multiple loans simultaneously across different platforms
    • Don’t fall for fraudulent services claiming they can artificially increase limits

    Monitoring Your Progress

    Safaricom reviews Fuliza limits every 90 days, so patience is essential. Track your progress by:

    • Regularly checking your limit using *234#
    • Monitoring your repayment consistency
    • Observing changes in your transaction patterns
    • Maintaining good financial habits across all platforms

    Timeline Expectations

    • New users: Expect to wait at least 6 months before seeing any significant limit
    • Existing users: Limits are reviewed every 90 days, so changes may take 3 months to reflect
    • Consistent users: Those with excellent repayment history may see gradual increases over 6-12 months

    Conclusion

    Increasing your Fuliza limit requires patience, consistency, and responsible financial behavior. Focus primarily on timely repayments and frequent M-Pesa usage, as these are the most significant factors in Safaricom’s scoring algorithm. Remember that limit increases are not guaranteed and depend heavily on your overall financial profile and relationship with Safaricom services.

    By following these proven strategies and maintaining excellent financial habits, you can work toward achieving the maximum Fuliza limit of KES 70,000, providing you with greater financial flexibility for your daily transactions.