5 Easy Ways to Improve your Credit Score
One number you will want to keep as high as possible is your credit score. This is the key to getting the best interest rates and being capable of borrowing money when you need it. Of course, you may get discounts for certain financial things you need on a daily basis, such as auto and home insurance. It’s critical to your financial health to work towards having a high credit rating. If your score isn’t where you want it to be it’s ideal to know specific things you can do that are sure to significantly improve it.
Pay bills on time
Each month you have financial obligations to make, and you’ll want to meet these before the due date arrives. Keeping your mortgage payment or rent, utility, insurance and all other bills paid on time is essential for having the best credit score possible.
One thing you can do to help avoid missing any payment dates is by setting up an automatic draft from your checking account. This can make the bill paying process much easier one and also allow you to consistently enjoy a higher credit rating.
Other ways to ensure payments are on time is by creating email notifications that will be sent to your inbox. You can schedule these yourself which makes this process an easy one to do and remember.
Eliminate credit card balances
When it comes to assigning your credit score, one thing that will be closely monitored is the balance on your credit cards. It’s important to pay these off as quickly as possible to avoid huge interest costs and to help keep your rating in the right range.
The majority of credit card companies allow at least 30 days to pay the balance and it’s always a good idea to get in the habit of making this payment within that timeframe. Otherwise, you could end up continually increasing your balance, and this may in return lead to a lower credit rating.
Ensure credit reports are accurate
It’s crucial to look at different credit reports to ensure these are accurate. Mistakes do happen, and it’s possible there could be quite a variation from one to the other.
If you do find what appears to be an error, you will want to give the company a call. There may be something that wasn’t accurately figured that you need to look into and doing this could improve your rating.
The last thing you will want to do is to be known for having a lower credit score when this isn’t even truthful. Be sure to take matters into your own hands and ensure your rating is accurate.
Below are some things you can review once you get the report:
1. Is all of your personal information correct?
2. Are all of the credit balances listed accurate?
3. Do you see any payments reported late that you made on time?
4. Is there any outdated information on the report?
Clear up collection accounts
One of the things you will want to take care of quickly are collection accounts. These are debts that you may have put on the back burner and just never got paid.
It’s up to you to take care of this old debt if you want to have a higher credit rating. The good news is this is possible to do and one way that will instantly raise your score.
The last thing you will want to deal with is past creditors hounding you about a bill you may have forgotten to pay. Take charge of this debt as fast as possible to assist in getting it off your credit record because it can make a negative impact.
When it comes to applying for credit, you will want to keep in mind less is more. It’s important to avoid getting too many credit cards.
Of course, it can be tempting to try and save 10% on purchases at a department store or other place where you’re a new customer. However, having too many credit cards in your name may cause your score to go down.
Be extremely careful about the credit applications you fill out if you want to keep your rating as high as possible.
You can work towards increasing this financial number when you take the time and make an effort to make it happen. It’s vital for your economic future to be mindful of the things you do with your money on a daily basis. Being successful with keeping your monthly costs down and saving money on interest rates will largely depend on your credit score. Get started today for an improved rating tomorrow!