10 Steps to Raising Your Credit Score

Make these steps a habit and see your credit score move upwards…

 

Have you been rejected for a loan because of your credit history?

Do you feel your credit score will fail you for potential future loans?

Are you in an urgent need to raise your credit score?

If you answered all these questions in affirmative then read on, as we are going to help you not only in raising your credit score but meanwhile also help you to maintain it and keep it on the high rise.

A good credit score works like a key to your financial life. It determines the person’s ability to obtain credit and be able to get approved for potential loans. The credit report provides information that impacts the credit score and in fact, it is the only thing that has such a significant impact on your credit score.

 

Having a low credit score means that now you have no access to your financial life. It will either keep you from acquiring credit on the whole or place you in the high-risk category. This means that even if by chance you are offered loans, the interest rates charged upon it will be notably higher as compared to someone with a good credit score.

 

For suppose, if you acquire a mortgage, home equity loan, student aid, or car loan then this can cause you tens of thousands of dollars just in interest fees.

 

The simple truth is that raising your credit score is not that hard and has a lot of benefits than you can actually think of. It is just about doing the right thing and doing it consistently. And also it is a matter of having patience to see the process gradually be deemed successful. I assure you that it will take time, but will be totally worth it in the long run.

 

So here are 10 easy steps that you can follow in your day to day life and see your credit score move in the correct direction and stay there with easy maintenance.

 

  1. Keep a check on the calendar

Every time you apply for credit, it causes a downward drop in your credit score. So you would want to stop yourself from applying for credit in a short term period. As recently, many students avail student loans, and keep applying for credit in short term periods, however, over a 30 to 40 day time period it is counted as one.

 

  1. Pay bills

Pay bills and pay them on time. As obvious as it may seem, it’s true that nothing will ever increase or decrease your credit score as rapidly as your bill payments. Not only will it show that you’re responsible to avail potential loans but also impact your credit report and bring considerable changes to your credit score.

 

  1. Hide your potential risk

Never showcase any deal that says ‘red alert’ as in risk on it. Divorce attorneys or pawnshop deals etc. are just two examples of deals that may not hurt your credit score as much but definitely show up in your credit report and scare off you’re your creditor because it shouts risk.

 

  1. Make smart moves

Allow your credit report to showcase your smart moves that how you paid your bills on time, applied for credit when it was extremely needed, asked for copy of your credit report to keep a check. If not raise your credit score, playing smart is playing a safe option towards your benefits of availing potential credit.

  1. Keep credit card balances low

Credit that is revolving on your name and credit that you are using, both can significantly impact your credit report and score, so the optimum? Go for 30% or lower and see your credit score sky rocket.

 

  1. Don’t remove old debt history

For all those who are in a hurry to pay their debts and get them removed from the credit report, stop! A good history of stable payments of debt will give a raise to your credit score and not plummet it downwards.

 

  1. Check credit report

One of the most rapid and easiest ways to raise your credit score and give it an extra boost is to regularly and carefully review your credit report. Make sure to get the incorrect information removed by initiating a dispute allowing it to disappear from your credit report within 10 to 30 days time period. Also correct any outdated information or errors that might be present there.

 

  1. Avoid extra inquiries

Multiple inquiries mean that there is a doubt involved with you taking any sort of credit or loan and that is ultimately bad for your credit score. However, every time you apply for credit, a particular inquiry would be conducted and remain on your credit report for two years. Out of those two, one year that inquiry is going to reduce your credit score so if you have multiple inquiries in a short period of time, it will take your credit score downwards.

 

  1. Take credit when needed

Take credit only when it is absolutely needed. Don’t allow yourself to be attracted to shiny piece of electronic card to help you buy stuff because applying for short-term credit card like the ones used for retail stores where after sometime you might just perform purchases with your regular card, is detrimental to your credit score.

 

  1. Talk in out with your creditor

There is nothing in the world that can’t be talked out or is not negotiable. Contrary to popular belief your creditor is not your enemy. We believe that anything and any person once associated to us with regards to money is more of an enemy however that is absolutely not true. Your creditor is a businessman and his business is also to avail and generate as much profit. However, when you fail to pay the bills on time, it impacts the creditor’s ability to do business, which in turn impacts the bottom line.

Many creditors are willing to negotiate terms as long as they remain within the financial realms of the firm. The creditors would be able to understand a financial situation or any urgent crisis if you just take a step to openly communicate about it. Skipping payments and terminating communication will do you no good and not help in any sort of raise in your credit score but maintaining a healthy relationship with your creditor will duly help you in the long run.

SOURCES:

https://www.entrepreneur.com/article/168290



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