Every time you turn on your T.V, you see commercials that are telling you to improve your credit score. Although they implore you get to work, you have no idea what they are really asking. If you read below, you will get some key tips as to what to do to make your credit score better than it was, last year. If you find they are suiting your needs, you can also share them with your friends and family. While they are not well-kept secrets, it is shocking to know so many people do not employ these simple pieces of advice.
Get the Facts
Data is not transferred between the three, and therefore it is wise to request your credit report from all three sources to ensure the information is accurate. A smart thing to do would be to place a request every four months, so your information is released evenly throughout the year. This way, you have ample time to improve your credit score before the next report is released. You are also updated at even intervals, which keeps your knowledge fresh and continuous.
Pay your Dues
It can be difficult to improve your credit score when you have outstanding debt and overdue credit card payments. Make sure you make each of these payments on time, whether they be for your student loans, your car, or your credit. The more responsible you are in making sure your bills are paid, the quicker you will see a positive change in your credit score.
We use credit cards for nearly everything nowadays, and it is no surprise that our credit scores as a nation have suffered dramatically. A wise piece of advice would be to pay with cash when you can, and only using your card in emergencies. If circumstances don’t allow you to do this, try to only make purchases you know you will need, and only give your information to credible sources.
Raise Your Limit
By raising the spending limit on your credit card, you are also lowering the percentage of use that will show up on your annual reports. While you may be spending the same amount, you will still be able to improve your credit standing. Make sure you don’t spend more than you can pay, however, as that would defeat the purpose of your actions.
Mix it up
Another way to keep percentages down in an effort to improve your credit score would be to mix up the credit and the cards you use. While you may have more payments, they will be smaller on each individual piece of plastic cash.
In addition, you should also vary your credit. There are two types of credit: revolving credit, which pertains to credit cards; and installment credit, which refers to larger payments such as loans and mortgages. If you can prove to your creditors you can obtain both types of credit and pay them off responsibly, your credit score will definitely be boosted.
Keep Holding On
Another method of proving your responsible credit card use is by keeping the same card for a very long time. Although opening many accounts might be a good idea for reducing your debt, it is important to close them as time goes on. Having several newer accounts does nothing to improve your credit score, and often tells creditors you are unreliable when it comes to the timeliness of your payments.
Wait it out
If you have decided to declare bankruptcy, it may take a decade for the balance to stop showing up on your credit report. Should this be the case, you might want to consider holding off on that new house, new car, or new loan. As your debts are paid and your balance lessens, your credit score will improve on its own. So long as you remain responsible after the fact, you still have the potential of a clean slate.
A good credit score makes it easier for you to apply for loans, as well as to obtain new credit cards and make large purchases. If you follow the tips above, your scores will be in great shape. Should you have come to us after the disaster that is bankruptcy, there is no need to worry. Even the most severe debt can come to an end, and our pointers can prevent future slip-ups.
Remember that everyone makes mistakes, sometimes, and not everyone who makes them is irresponsible or guaranteed to execute the same faults in the future. Know that you are not alone in the desire to improve your credit score, and know that you can benefit from better credit no matter what is your current standing.