One should essentially know how to improve their credit score as it will help them to put their finances in the proper place. You should be aware of the fact that a credit score is a tool to measure your qualifications to get new credit cards & loans.
Not only these, credit scores influence many other decisions as well including the insurance rates, cell phone accounts, the capability to pass for utility services, rental down-payment amount and also the capacity to get a new job.
If you have lately learned about your low credit score, then it is the best time to start working on it as soon as possible. What if, you will require a specific service that needs an examined look at your complete credit profile.
You should start now or else your credit report will take many months to reveal your efforts.
Here are the 5 Easy Tricks to Improve Your Credit Score:
1) Do Certain Editing to Your Credit Report
Firstly, examine the information reported by all the major consumer credit reporting agencies, TransUnion, Equifax, and Experian.
Now, you can avail a free copy of your credit report via AnnualCreditReport.com. Not all the information reported by them are correct as sometimes they also make common errors. Errors can lower your credit ratings. You can correct any errors in your credit report by contacting the companies who reported bad information.
2) Don’t Open a Lot of New Accounts
The age of an account is one of the important elements that affect credit scores. An old account with an age of many years is considered more than a new account. Hence, you should stop yourself to open a lot of new accounts because it can greatly reduce the overall age of your accounts. Also, with every new application, your credit report is noted with a “hard inquiry” that directly lower your credit score.
But you can do this if you want by just requesting for increasing your credit limit (on your existing bank account) instead of opening new ones.
3) Cut Down Your Balances of Credit Card
Every credit reporting agency closely examines your credit card balance as well as various revolving debt.
Do your credit card balance is close to the limit? If yes, then it will dramatically affect your credit score.
Hence, if you have a balance, try to cut down it in a way that uses less than 30% of the available credit amount at any given period.
4) Clear Your Bills Online
It is high time to upgrade your efforts to pay your bills and leave the traditional way of sending checks through the mail. Through mail, one cannot know the exact date when the payment is to be received as well as processed. But if you do online payments for your bills, then you can assure your payments are received on time. Today, most of the institutions provide auto pay set-up. With this set-up, you do not have to think about payments of your bills every month because your payments will be automatically reduced from your respective checking account.
5) Clear All Your Collections Accounts
A collection account can be the result of a failed payment. The collection account remains on credit report for straight 7 years. You should try to clean up every past debt as it will certainly improve your credit score as well as help you to find some good lenders who will take full responsibility for your past mistakes.
All these strategies will help you to acquire the credit goals.
Your credit scores directly influence all the major decisions of your life & is a legit reflection of your skills in financial management!!!