How to boost your credit score in 7 easy steps
1: Check your score
Your starting point is checking your credit
score. It will provide you with an overview of what’s happening with all three
major bureaus and show you where there are opportunities for improvement. You
can check each bureau individually or get a free snapshot from Credit Karma,
which offers quick access to a wide range of information. While some people
might be tempted to just go straight for a free credit report, keep in mind
that it won’t be very detailed and won’t give you much context about how one
factor affects another—for example, why certain collections on one bureau don’t
have any effect on another—so it won’t tell you much more than here are your
scores
2: Pay off debt
One of your best bets for improving your
credit score is by paying off debt. The more utilization you have, or how much
you owe versus how much credit you have available, the lower your score. If you
pay off a $4,000 balance and cut down on utilization from 60 percent to 20
percent, for example, it will improve your score by 100 points or more—and
that’s a great start on boosting your FICO. No matter what type of debt you
have (credit cards, medical bills, student loans), an effective strategy might
be taking care of one account at a time as you build up your ability to make
larger payments. Make sure every dollar counts when repaying creditors; also
consider taking advantage of opportunities to negotiate terms with them so they
aren’t sending notices threatening legal action.
3: Don’t open too many new cards
Opening too many new credit cards at once is
a bad idea. Your debt-to-credit ratio (or DTI) will be too high and you risk
lowering your credit score, which can make it more difficult to buy a house or
even rent an apartment. In addition, opening several new accounts within a
short period of time may trigger an investigation from one or all three major
credit bureaus. This could lead to hard inquiries on your reports and possibly
hurt your score further. If you’re going to open multiple new accounts, spread
them out over a couple of months—ideally 6-12 months—so they don’t show up as
multiple hits on your report(s). And remember: Always pay off credit card
balances in full each month so that carrying debt doesn’t become an issue for
you!
4: Stay on top of bills
If you want a good credit score, you’ll need
to stay on top of bill payments. Miss one payment and be sure that it will take
years for you to recover—even if you pay all of your other bills right on time.
Paying bills on time and keeping debt low are essential factors of healthy
credit history. But many people don’t understand how they impact their scores.
Fortunately, it’s easy to learn how you can improve your credit standing by
making simple changes:
(1) Keep an eye on due dates;
(2) Pay as much as possible;
(3) Never charge more than 30% of total available credit;
(4) Take care with opening new accounts;
(5) Don’t close existing accounts unless absolutely necessary.
These sound like basic financial tips, but
most people have little trouble executing them well! To boost your score by 50
points or more you’ll need to make a few bigger changes. Do yourself a favor
and follow these four pieces of advice:
(1) Keep credit card balances under 30% of available credit;
(2) Make sure at least one account has been open for 6 months;
(3) Have no inquiries from new creditors within last 6 months;
(4) Keep the amount of newly opened accounts to a minimum each
year.
5: Ask for a higher limit
Applying for a small credit limit is one of
the quickest ways to shoot yourself in the foot when it comes to building or boosting your credit score.
Why?
Because it’s an easy way for banks and other
lenders to see you as a risky candidate. That’s because, if you have a low
limit on an account — especially an installment loan such as a mortgage — then
it makes lenders think that you’re not responsible enough with money.
6: Get a secured card
A secured card is a great way to boost your
credit score quickly because of its safe nature. With a secured card, you
deposit money into an account, and that amount becomes your limit—meaning you
aren’t racking up interest. If you make on-time payments for 12 months, it will
help build trust with creditors, which is why getting a new card can help your
standing immensely. Most secured cards don’t charge annual fees, either! Best
of all: No one will know about it but you! Need more advice? See our full guide
on how to boost your credit score.
7: Keep an eye on new accounts
New accounts, or inquiries, have a
disproportionate impact on your credit score. When you apply for a loan, car or
even a new cell phone contract, a hard inquiry will appear on your credit
report for that account. Too many inquiries can lower your overall credit score
because it appears as if you’re desperate for financing (which isn’t good).
For every new account you open up, you should
plan on waiting at least 6 months before applying for another one. This will make
sure inquiries don’t damage your score and give you time to pay off balances
from previous accounts so they do not become delinquent. It’s also important to
remember; if you close an account with a balance due and then reapply for that
same line of credit within 5 years, it is viewed as opening up a new account
and not just replacing old debt with new debt – so only close lines of credit
when absolutely necessary.
Contact us -
Address - 18930 HWY 18STE 101 Apple valley CA 92307
Phone - (866) 342-1062
Email - info@decswekilldebt.com
Website - DECS-WE KILL DEBT
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