14 May How to Increase Your Credit Score
It puts a lot of stress on someone when they try and try to get approved for a loan, but it fails. If you are someone who isn’t getting approved for credit cards or loans or aren’t getting favorable rates for financing, you might need to take into consideration making some changes to your credit score. Although it may be a slow and dreadful process, here are some tips that can help you increase your credit score. The wait is worth it!
Check Your Credit Report
The first step you should always take when improving your credit score is double-checking your credit report. It is very possible that there could be mistakes that could harshly affect you. Since your credit score is based on all the data in your credit reports, it is crucial to make sure the information is accurate or your score will reflect that mistake. Take some time to sit down with a highlighter and your report, to make sure everything is perfect.
If you have a history of making late payments, creditors see you as a larger risk. They lose trust in you having to borrow money and may not approve you. Payment history is one of the largest credit score factors; they look for someone who can pay the right amount at the right time. Set up payment reminders every month, so you can stay on top of your bills and improve your credit score. If you are someone who procrastinates, it may be easier for you to enroll in automatic payments!
Stop Using Your Credit Card as Much
Being able to buy anything you want at any time is a blessing for many, but then getting stuck with a large bill at the end of the month that you may not have the funds for can be a curse. If you are maxed out on your credit, getting approved for loans is nearly impossible. Do yourself a favor and limit the amount of money you owe but not using your card as much. You will appreciate it at the end of the month when you are not in debt!
Open Many Accounts
Some may think it is crazy to open more credit accounts and be responsible for more payments, but it is a great way to fix your credit score. Having different credit cards will give you the ability to use them in small amounts, and then you can pay them off on different dates, so you aren’t stuck with one large bill at the end of the month. This will increase your available credit, lowers your utilization ratio, and will also help to improve your payment history.
Fixing a bad credit score is not something that will happen overnight. It is a process that requires good financial responsibly. Follow these steps and you will notice some major improvement, saving you thousands in interest payments over a lifetime. Contact us today to find out how we can help guide you in increasing your credit score!