Your credit score can help you qualify for loans. It gives you better interest rates and even gets you a lower insurance premium.
If your score is not looking good, It is worth taking the time to improve your number. Here are seven things you can do that will help improve your credit score.
1. Pay all Bills on Time
This is the first point that can’t go without mentioning. It is what gets most people on the lower end of the score. If you want a good credit score, you need to pay all your bills on time. This has the biggest impact on your overall rating.
2. Keep Balances Low on Cards
Your credit utilization ratio (how much of your available credit you’re using) is another major factor in your FICO score. Keeping your balances low will help improve your score in this area. Avoid using more than 30 percent of each card limit each month.
The higher the balance in comparison to the limit, the more it can affect your score negatively. Utilizing less than this amount will help keep your score up while paying down balances. This means if you have $15,000 in available credit across several cards and use more than $5,000 at any given time, it can hurt your score.
3. Keep an Eye on New Credit Inquiries
Every time someone pulls your credit report, it shows up as an “inquiry” and can lower your score slightly. Credit inquiry doesn’t have a huge effect as long as you get the quotes within 30 days of each other. Doing so will limit the impact on your credit score. Also, ensure you aren’t opening many new accounts or have more than six inquiries.
When applying for new credit cards or loans, get quotes within 30 days of each other. Doing so will limit the impact on your credit score.
If you suspect unauthorized inquiries, dispute those errors, and the fastest way to dispute and boost your score is with the help of a credit expert like Ascent Network. Limit Inquiries on Your Credit Report.
4. Pay off Debt to Improve Credit Score
Paying off debts is a great way to improve your credit score or utilize debt consolidation services. The lower the debt you have, the better your chances of improving your score. You can also consolidate your debts into a single large debt with favorable interest rates and payoff terms and pay them quickly. Focus on paying off your credit cards with the highest interest rates first and, if possible, pay more than the minimum payment due.
5. Keep Old Accounts
Don’t close old accounts that you don’t use anymore. But rather keep them open and active by using them once in a while. If they don’t have an annual fee, there’s no reason to close them in order to improve your credit score.
If you have bad credit, you’re not alone. According to the Federal Reserve, more than half of Americans have a credit score under 680.
6. Check Your Credit Report
It is very important to check your credit history at least thrice a year to know your credit score. You will detect fraudulent activities since it is easy for criminals to open credit cards in your name.
7. Get a Secured Credit Card
A secured credit card will help you manage your finances better. You will be required to deposit some cash to open the account. Credit card companies will report your credit score to credit bureaus as you keep using the secured credit account. So, be sure to make at least minimum payments on time to improve your score.
Key Tips to Managing Your Finances
What should you do to manage your finances and not default in repaying your debts? Organize: Make sure your files are in order, so it’s easy to find bills and statements needed to create a budget.
- Set goals: Determine what you want to accomplish, such as paying off debt or building an emergency fund of three to six months’ living expenses.
- Create a budget: Figure out how much money comes in each month and where it goes. You may need to cut back on spending money on unnecessary things until you reach your goals.
- Build an emergency fund: This will help you pay debts even when you lose your job or in the case of unexpected expenses. Have savings worth three to six months in your emergency fund.
Credit scores are used by lenders as a way to predict how likely you are to repay the money you borrow. The higher your score is, the more willing lenders will be to take a chance on you. People with higher scores than yours are offered lower interest rates and better terms on loans and credit cards. It is best to take charge and improve your credit score to enjoy the
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho
Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.